State Street SPDR S&P 500 ETF Trust (SPY) introduced new options trading today for the June 2027 expiration. Investors can explore a put contract at a $724.00 strike price with a current bid of $38.43, potentially allowing for a cost basis of $685.57 if sold to open. This price equates to approximately a 1% discount from today’s SPY share price of $733.35, with a 64% chance that the contract could expire worthless, yielding a 5.31% return on cash commitment.
Additionally, a call contract at a $763.00 strike price has a current bid of $53.20, enabling investors to achieve a potential total return of 11.30% if the stock is called away at expiration. Given that this strike price represents a 4% premium over the current share price, there’s a 48% likelihood that the call contract would also expire worthless, resulting in a 7.25% extra return if successful. Options’ implied volatility stands at approximately 19%, while the trailing twelve-month volatility is calculated to be 12%.
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