Investors in Microsoft Corporation (MSFT) have access to new options contracts expiring June 24th. The notable contract includes a $405.00 strike put option with a current bid of $5.75, allowing an investor to potentially buy MSFT shares at an effective cost basis of $399.25, presenting about a 1% discount from the current trading price of $409.92. The probability of this put option expiring worthless is approximately 60%, equating to a potential 1.42% return on cash commitment or 34.55% annualized, termed as a “YieldBoost.”
Additionally, a call contract at the $415.00 strike is available with a bid of $6.35. If investors purchase MSFT shares at $409.92 and sell this call as a covered call, it could yield a total return of 2.79% if exercised. The chance of this call option expiring worthless is around 56%, potentially delivering a 1.55% additional return or 37.69% annualized. The implied volatilities for the put and call are 30% and 31%, respectively.
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