QQQ Options for August 5th Now Available for Trading

Investors in Invesco QQQ Trust (QQQ) have new options available today, with contracts expiring on August 5th. The notable put contract at a $700.00 strike price offers a current bid of $10.57, effectively lowering the cost basis of shares to $689.43 for investors who sell-to-open the contract. This represents a 1% discount to the current trading price of $706.42. Analytical data indicates a 60% chance the put contract may expire worthless, providing an annualized return of 39.37% if it does.

On the call side, a $710.00 strike price call contract has a current bid of $12.53. If an investor purchases shares at $706.42 and sells this as a covered call, they could achieve a total return of 2.28% if the stock is called away by the expiration date. The likelihood of this call contract expiring worthless is estimated at 51%, potentially yielding an annualized return of 46.24% if it expires unexercised.

The implied volatility for the put contract stands at 26%, while the call contract has an implied volatility of 24%. The trailing twelve-month volatility for QQQ has been calculated at 19%.