GitLab Inc (Symbol: GTLB) saw new options trading today for the November 21st expiration, with 101 days until expiration. A notable call contract with a $42.50 strike price has a bid of $3.90. With the stock currently priced at $39.80, a covered call strategy could yield a total return of 16.58% if the stock is called away at expiration. The strike price represents a 7% premium over the current trading price.
Current data shows a 49% chance that the covered call will expire worthless, allowing the investor to retain both the shares and the premium collected, which would result in a 9.80% boost to returns, or 35.40% annualized. The implied volatility for this call contract is 68%, while the actual trailing twelve-month volatility stands at 57%.
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