Investors in iShares Trust – iShares iBoxx High Yield Corporate Bond ETF (HYG) saw new options trading commence today for the September 2027 expiration. With 367 days until expiration, these new contracts may offer sellers of puts or calls a potentially higher premium compared to shorter-term contracts. The put contract at the $71.00 strike price is currently bid at 5 cents, allowing an investor who sells-to-open to acquire shares at an effective cost basis of $70.95, compared to the current trading price of $78.44.
The $71.00 strike represents an approximately 9% discount to the current share price, with a 75% chance that the put contract will expire worthless. If it does, the premium would yield a return of 0.07% on the cash commitment, annualized. The implied volatility for this put contract is 14%, while the trailing twelve-month volatility is calculated at 4% based on the last 251 trading days.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
