**Investors in the Select Sector SPDR Trust – Health Care Select Sector SPDR ETF (XLV) can now trade new options with a September 25th expiration date.** A key put option is available at a $156.00 strike price, currently bidding at 50 cents. If sold to open, the investor would effectively pay $155.50 per share after accounting for the premium, providing a potential 5% discount from the current price of $163.68.
Additionally, a call option at a $169.00 strike is available with a bid of $1.51. This could offer a total return of 4.17% if exercised at the expiration date. The likelihood of the $156.00 put expiring worthless is estimated at 78%, while the $169.00 call has a 62% chance of expiring worthless as well, suggesting potential yield boosts of 2.34% and 6.73% annualized, respectively.
The implied volatility for the put option stands at 21%, while the call’s volatility is at 19%. In contrast, the actual trailing twelve-month volatility of XLV is calculated at 15%.
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.
