Investors in Workday Inc. (Symbol: WDAY) saw new options trades become available on April 10th. A notable put contract at the $140.00 strike price has a bid of $6.60, allowing investors who sell-to-open to effectively purchase shares at a cost basis of $133.40, representing a 1% discount from the current trading price of $141.09. The likelihood of the put contract expiring worthless is estimated at 54%, offering a potential 4.71% return on the cash commitment or 40.06% annualized.
Additionally, a call contract at the $145.00 strike price currently bids at $5.30. Selling this contract while holding shares can yield a total return of 6.53% if exercised by the expiration date. The call option has a similar 54% chance of expiring worthless, potentially providing a 3.76% boost to the overall return or 31.92% annualized.
Implied volatility for the put is at 47% and for the call at 48%, while the actual trailing twelve-month volatility is calculated at 38%.
