Goldman Sachs Group Inc (GS) launched new options trading today for the March 27th expiration date. Notably, a put contract at the $875.00 strike price has a current bid of $36.00, allowing investors to potentially acquire shares at an effective cost basis of $839.00, representing a 1% discount from the current trading price of $880.11. The odds of this put contract expiring worthless are estimated at 56%, indicating a potential 4.11% return on the cash commitment, or 30.06% annualized.
On the calls side, a call contract at the $890.00 strike price has a current bid of $40.00. If purchased together with shares at the current price, the total return could be 5.67% if the stock is called away by the expiration date. This strike is approximately 1% above the current price, with a 49% chance of expiring worthless, which would still yield a premium return of 4.54%, or 33.21% annualized.
Both contracts feature an implied volatility of approximately 35%, compared to an actual trailing twelve-month volatility of 32%.
