Investors in Alphabet Inc. (NASDAQ: GOOGL) gained access to new options today, set to expire on August 19. The notable put contract at a $375.00 strike price has a bid of $7.70, effectively allowing investors to commit to purchasing shares at that price, creating a cost basis of $367.30 when accounting for the premium. This represents approximately a 1% discount from the current trading price of $377.31. Data indicates a 55% chance that this put contract may expire worthless, which could yield a 2.05% return on investment, equating to a 49.96% annualized return.
On the call side, the $380.00 strike price call contract is currently valued at $7.05. Investors buying shares at $377.31 and selling a covered call would commit to selling at $380.00, resulting in an estimated total return of 2.58% if exercised. The likelihood of this call contract expiring worthless stands at 53%, potentially delivering a 1.87% extra return, equating to a 45.47% annualized return.
Implied volatility for the put option is 34%, while the call option shows 32%. The actual trailing twelve-month volatility is calculated at 32%, based on the past 251 trading days and the current price.
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