Investors in Alphabet Inc. (GOOGL) began trading new options today, with a notable put contract set for expiration on July 15 at a $350.00 strike price, currently bidding at $6.05. Investors selling this put would effectively commit to buying GOOGL shares at $350.00, yielding a cost basis of $343.95—a 1% discount to the current trading price of $352.48 per share. Current analytical data suggest a 56% chance that this contract could expire worthless, offering a potential 1.73% return on the cash commitment, equivalent to an annualized 42.06%.
On the call side, a $355.00 strike price contract is bidding at $5.70. If an investor buys GOOGL shares at $352.48 and sells this call, they would commit to selling at $355.00 and could achieve a 2.33% total return, excluding dividends, if the shares are called away. The odds of this call contract expiring worthless stand at 53%, which would allow the investor to retain both the shares and the collected premium, resulting in a potential 1.62% additional return or 39.35% annualized.
Implied volatility for the put is at 32%, while the call’s is 30%. The actual trailing twelve-month volatility is calculated at 30%.
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