Investors in Microsoft Corporation (MSFT) can now explore new options set to expire in March 2027. A put contract at a $430 strike price currently has a bid of $42.05, allowing sellers to commit to purchasing the stock at that price while effectively reducing their cost basis to $387.95, representing a 1% discount from the current price of $435.17. The odds of this put contract expiring worthless is approximately 62%, potentially yielding a 9.78% return on commitment.
On the call side, a contract at the $470 strike price stands with a bid of $44.00. If investors buy shares at $435.17 and sell this covered call, they could see an 18.11% total return if the stock gets called away at expiration. However, the call being out-of-the-money by 8% suggests a 49% chance of it expiring worthless, thus allowing the investor to keep both their shares and the premium collected, potentially boosting returns by 10.11%.
