Datadog Inc (Symbol: DDOG) has introduced new options trading for a November 21st expiration, with 143 days until expiration. Notable contracts include a put option at a $125 strike price, currently bid at $8.35, presenting a 7% discount from the current trading price of $134.92, with a 69% chance of expiring worthless.
For call options, the $140 strike is currently bid at $12.65. If investors buy shares at $134.92 and sell this call as a covered call, they could realize a potential total return of 13.14% by the expiration date, though there is a 48% chance the option may expire worthless, allowing retention of shares and premiums.
Implied volatility for the put is 43% and for the call is 42%, while the trailing twelve-month volatility stands at 40%.
