Investors in the iShares Inc – MSCI Brazil ETF (Symbol: EWZ) gained access to new options today, expiring in March 2027. Notably, a put option at the $36.00 strike price is being offered with a current bid of $2.40. If executed, the effective cost basis for purchasing shares would be $33.60, a 9.8% discount to today’s trading price of $36.71. The probability of this option expiring worthless is approximately 61%.
Additionally, a call option at the $38.00 strike price is currently priced at $2.58. Selling this as a covered call could yield a total return of 10.54% if exercised, based on the current price. The chances of this call option expiring worthless stand at around 48%. Both options provide potential opportunities for investors, with implied volatilities of 37% for the put and 36% for the call.
