Investors in SoundHound AI Inc (SOUN) saw new options listed for the June 18th expiration, introducing a put contract at a $5.00 strike price with a current bid of 18 cents. This put option represents a potential cost basis of $4.82 for purchasing shares, which is a 38% discount from the current trading price of $8.01. There is an 87% probability that this contract could expire worthless, offering a 3.60% return on cash commitment or 13.27% annualized if it does.
On the call side, a $14.00 strike price contract is currently bidding at 12 cents. Selling this covered call would assume a total return of 76.28% if the stock is called away at expiration. The $14.00 strike is approximately 75% above the current price, with a 76% chance of the contract expiring worthless, allowing the investor to keep both shares and premium collected.
Implied volatility for the put contract stands at 106% and 90% for the call contract. The actual trailing twelve-month volatility is calculated at 84%.
