Investors in Microsoft Corporation (MSFT) gained access to new options today, with contracts set to expire on May 4. A put contract at the $415 strike price is currently bid at $10.50, allowing investors to potentially purchase shares at an effective cost of $404.50 if the contract is exercised. This represents a 1% discount compared to the current trading price of $421.03 per share. Analysts estimate a 59% chance of the put contract expiring worthless.
On the call side, a $425 strike price contract is offered at $12.85. If investors buy shares at the current price and sell this call, they could see a total return of 3.99% if the stock is called away at expiration. This call option has a 51% likelihood of expiring worthless. The implied volatility for the put contract is 47%, while the call contract sits at 45%, contrasting with a trailing volatility of 24% based on the last 250 trading days.
