Investors in STMicroelectronics NV (NYSE: STM) have new options available with an expiration date of August 7, 2023. Notably, a put contract at a $72.00 strike price has a current bid of $6.50, potentially allowing investors to acquire shares at an effective price of $65.50, a 1% discount to today’s trading price of $72.72. The odds of the put expiring worthless sit at approximately 58%, which could yield a 9.03% return on cash commitment if successful.
On the call side, a $76.00 strike price call contract has a bid of $6.60. Selling this as a covered call after buying shares at $72.72 would yield a potential return of 13.59% if the stock is called away at expiration. This contract faces a 49% chance of expiring worthless while retaining the shares and the premium, equaling an additional 9.08% return if executed successfully. Implied volatilities for the put and call contracts are at 85% and 90%, respectively.
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.
