Investors in iShares Trust – iShares MSCI Emerging Markets ETF (EEM) can now access new options for March 2027. A notable put contract is available at a $58.00 strike price, currently bidding at $3.00. Selling this put would require an investor to purchase shares at $58.00, effectively lowering their cost basis to $55.00, which is a 5.4% discount to the current share price of $58.35. The odds of the put expiring worthless are estimated at 59%, providing a potential annualized return of 5.16% if it does.
On the call side, a contract at the $59.00 strike price is available, currently. with a bid of $3.50. If shares are purchased at $58.35 and the call is sold as a covered call, the total return could reach 7.11% if exercised. The probability of this call expiring worthless is 45%, leading to a 5.98% annualized yield boost if the option expires unexercised. Both contracts are trading under an implied volatility of approximately 26%.
