Investors in Rigetti Computing Inc (RGTI) have the opportunity to trade new options expiring on March 6, 2023. A notable put contract at the $20.50 strike price has a current bid of $1.40, implying a commitment to purchase shares at $20.50, effectively lowering the cost basis to $19.10 per share, which is a 17% discount from the current trading price of $24.67.
On the calls side, a $27.00 strike price call contract is available with a bid of $1.95. Should an investor opt for this covered call strategy while buying shares at $24.67, they could realize a total return of 17.35% if the stock is called away at expiration. The likelihood of both contracts expiring worthless is estimated at 75% for the put and 50% for the call. The implied volatility for the put is 112%, while the call sits at 126%.
