Investors in the iShares Expanded Tech-Software Sector ETF (IGV) can now trade new options with a September 18th expiration, presenting potential opportunities for higher premiums due to 107 days until expiration. The key highlights include a put contract at an $80 strike price, currently bid at $1.15, allowing investors to purchase IGV shares effectively at $78.85, representing a 21% discount from the current trading price of $101.05. The odds of the put expiring worthless are estimated at 88%.
On the call side, the $110 strike price call contract has a current bid of $3.40. If investors opt for a covered call while purchasing shares at $101.05, they would commit to selling at $110, yielding a 12.22% total return if exercised. Additionally, there is a 63% chance the option could expire worthless, allowing investors to retain both shares and the premium, translating to an 11.48% annualized return. Implied volatilities for the put and call contracts are 42% and 34%, respectively, while the trailing twelve-month volatility stands at 28%.
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