On October 3rd, new options for SentinelOne Inc. (Symbol: S) began trading, with a notable put contract at a $14.00 strike price. This contract has a current bid of 30 cents, allowing an investor to purchase shares at an effective cost basis of $13.70, approximately 16% below the current market price of $16.59. There is an 82% likelihood that this contract may expire worthless, which would yield a 2.14% return on the cash commitment, or 18.19% annualized.
Additionally, a call contract at a $18.00 strike price is available, with a bid of 70 cents. If shares are purchased at $16.59 and the call is sold, the total return upon expiration could reach 12.72%, excluding dividends. The probability of this call expiring worthless is 60%, which could offer an additional 4.22% return, or 35.82% annualized. The implied volatility for the put is 60%, while the call stands at 67%
Currently, the trailing twelve month volatility is calculated to be 47%. Investors interested in further options strategies can explore additional ideas at StockOptionsChannel.com.
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