Investors in Global X Funds’ Global X Uranium ETF (URA) began trading new options contracts today, set to expire on September 18, 2023. The new options offer a time value advantage with 154 days until expiration, presenting opportunities for higher premiums compared to contracts with shorter expirations.
A notable put contract at the $55.00 strike price has a current bid of $5.20, potentially allowing investors to purchase shares at a cost basis of $49.80 if executed. This price represents a 2% discount from the current trading price of $55.90 per share, with a 58% chance of the put expiring worthless. Similarly, a call contract at the $58.00 strike price has a bid of $5.30, which could yield a total return of 13.24% if the stock is called away by the expiration date. This strike price indicates a 4% premium to the current trading price, with odds of it expiring worthless estimated at 48%.
