Investors in Seagate Technology Holdings PLC (STX) can begin trading new options with a February 2026 expiration. Notably, a put contract at the $285 strike price has a current bid of $24.40, allowing investors to potentially purchase shares at a cost basis of $260.60. This represents a 1% discount from the current trading price of $286.81. The odds of this put contract expiring worthless are estimated at 56%, offering an 8.56% return on the cash commitment, or 71.02% annualized.
On the call side, a contract at the $290 strike price is bid at $23.40. If investors purchase shares at $286.81 and sell this covered call, they could achieve a total return of 9.27% if the option is exercised. The likelihood of this covered call expiring worthless is approximately 47%, with a potential YieldBoost of 8.16% or 67.68% annualized if it does.
The implied volatility for the put contract is at 68%, while the call contract’s implied volatility stands at 67%. The actual trailing twelve-month volatility is calculated to be 53%, based on the last 250 trading days.
