Investors in Visa Inc (V) can now access new options expiring on July 17, 2023, with 128 days until expiration. Notable contracts include a put option at a $310.00 strike price, with a current bid of $16.65, and a call option at a $315.00 strike price, bidding at $19.50. The put option represents a 1% discount from Visa’s current trading price of $313.09, while the call option signifies a 1% premium to that same price.
Selling the $310.00 put option allows investors to commit to purchasing shares at an effective cost basis of $293.35, which could yield a 5.37% return if it expires worthless, or 15.32% annualized. Conversely, the $315.00 call option could produce a total return of 6.84% if shares are called away at expiration. Current probabilities suggest a 58% chance that the put option will expire worthless and a 46% chance for the call option. Both contracts feature an implied volatility of around 28%, against an actual trailing twelve-month volatility of 24%.
