Investors in iShares Trust – iShares U.S. Real Estate ETF (IYR) saw new options available for September 2027. The notable put contract is at a $70.00 strike price with a current bid of 45 cents, representing a commitment to buy the stock at a cost basis of $69.55, 29% below the current trading price of $98.69. Analysts estimate a 94% chance this contract will expire worthless, equating to a 0.64% return on cash, or 0.65% annualized.
On the calls side, the $100.00 strike price has a current bid of $5.10. Selling this covered call while holding IYR shares at $98.69 could yield a total return of 6.50% if exercised by expiration. There’s a 47% chance the contract will expire worthless, allowing investors to retain both shares and the premium collected, yielding a 5.17% additional return, or 5.24% annualized. The implied volatility for the put is 26%, while it’s 18% for the call.
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