**Investors in ASE Technology Holding Co Ltd (Symbol: ASX) can now access new options contracts with a December 2028 expiration.** The introduction of these contracts offers a notable opportunity for options sellers due to the extended time value associated with the 886 days until expiration. Currently, a put contract at the $40.00 strike price has a bid of $12.50, allowing investors who sell it to commit to buy at that price, effectively setting their cost basis at $27.50. This represents a potential discount of approximately 3% compared to the current trading price of $41.10.
In addition, a call contract at the $50.00 strike price has a current bid of $13.00. If investors purchase shares at $41.10 and sell this call, they stand to gain a total return of 53.28% if the stock is called away at expiration. However, this strike price reflects a 22% premium over the current trading value. Analytical data indicates a 35% chance that the covered call could expire worthless, allowing investors to retain both their shares and the premium. Current implied volatilities are noted at 74% for puts and 71% for calls, whereas historical volatility stands at 51%.
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