Investors in Microsoft Corporation (MSFT) can now access new options expiring on June 17, 2023. Notable contracts include a put option with a strike price of $440.00, currently valued at a bid of $7.95. If executed, this would allow an investor to buy shares at an effective cost basis of $432.05, a 2% discount compared to the current trading price of $446.97. The likelihood of this put option expiring worthless is estimated at 62%.
On the call side, a contract with a strike price of $450.00 is available with a bid of $10.50. If an investor buys shares at the current price and sells this call, they could achieve a total return of 3.03% if the stock is called upon expiration. The odds of the covered call expiring worthless are around 51%, potentially offering a 2.35% additional return if it does, representing an annualized yield boost of 57.16%. The current implied volatility for both contracts stands at approximately 35%.
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