Investors in Amazon.com Inc (AMZN) gained access to new options today, expiring on March 13. Notably, a put contract at a $235.00 strike price is currently bid at $8.60, allowing investors to purchase shares at an effective cost of $226.40, a 4.99% discount from today’s trading price of $237.89. Analysts project a 59% chance that this put contract could expire worthless.
Additionally, on the call side, a contract at the $245.00 strike price is bid at $9.35. If investors purchase AMZN shares now and sell this call as a covered call, they stand to earn a total return of 6.92% by the March expiration, with a 53% likelihood that the call could also expire worthless. Implied volatility for both contracts is around 39%, while trailing twelve-month volatility is calculated at 35%.
