Investors in STMicroelectronics NV (STM) can now access new options expiring on July 31. A notable put contract at a $74.00 strike price currently has a bid of $7.20, allowing investors to potentially purchase shares at an effective cost basis of $66.80, offering a 9.73% return if the put expires worthless. The odds of this occurring are approximately 56%.
On the calls side, a $75.00 strike price call contract is available with a bid of $7.00. This allows investors to commit to selling shares at $75.00 while also collecting the premium, potentially yielding a 10.13% return if exercised. The odds of this contract expiring worthless are estimated at 46%.
The stock’s current trading price is $74.46, representing a 1% discount for the put and a 1% premium for the call. Implied volatility for the put is 82%, while for the call, it’s at 88%, with the trailing twelve-month volatility calculated at 53%.
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