Investors in Invesco QQQ Trust (Symbol: QQQ) saw new options trading begin today for contracts expiring on June 17. Notably, a put contract at the $740.00 strike price is currently bidding at $9.90, allowing an investor to potentially secure shares at an effective cost basis of $730.10, which is approximately 1% below the current trading price of $745.88. The odds of this put contract expiring worthless are estimated at 58%.
On the call side, a contract at the $750.00 strike price is bidding at $8.81. If an investor buys shares at $745.88 and sells this covered call, they could see a total return of 1.73% if the option is exercised, with a 55% chance of the contract expiring worthless. Both strategies exhibit significant annualized returns, with the put offering a potential YieldBoost of 34.88% and the call providing 30.79%. The implied volatility for the put is 21%, while the call stands at 20%, against an actual trailing volatility of 16%.
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