Investors in the iShares Trust – Core S&P 500 Exchange Traded Fund (IVV) can now trade new options with a December 2028 expiration. As of today, these options have a notable time value, given that there are 1002 days until expiration. Key contracts include a put at a $640 strike price with a current bid of $61.50, allowing an effective purchase price of $578.50 if executed. Conversely, a call at a $750 strike price has a bid of $66.50, offering a potential total return of 23.88% if the stock is called away at expiration.
Current trading data indicates that the $640 put contract is approximately 3% below IVV’s current trading price of $659.13, with a 68% chance it will expire worthless, while the $750 call represents a 14% premium over the current price, with a 52% likelihood of also expiring worthless. Implied volatility for the put is 22%, and for the call, it is 20%. The options present alternative investment strategies for shareholders considering either a buying opportunity or generating additional returns.
