Investors in Lyft Inc (LYFT) are now able to trade new options set to expire in December 2028, with 926 days until expiration. Key contracts of interest include a put option at a $12.00 strike price, currently bid at $2.01, allowing investors who sell it to secure shares at an effective cost of $9.99 should the contract be exercised. This put offers a possible 77% chance of expiring worthless, with a yield of 16.75% on cash commitment if it does, equating to a 6.60% annualized return.
On the call side, a $20.00 strike price contract is available for a bid of $2.81. Selling this covered call while owning shares at $13.99 could lead to a 63.05% total return at expiration, excluding dividends, though it carries a 41% chance of expiring worthless. If it does expire without value, investors would retain their shares and earn a 20.09% additional return, or 7.92% annualized.
The current trading price of Lyft is $13.99, with the implied volatility for both contracts around 63% and trailing twelve-month volatility calculated at 50%.
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