Investors in AstraZeneca plc (Symbol: AZN) saw new options trading begin today for the August 8th expiration. A notable put contract at the $66.00 strike price has a current bid of 80 cents, allowing sellers to potentially secure shares at an effective cost of $65.20. This price represents a 6% discount from the current trading price of approximately $70.00, with a 77% chance that the put will expire worthless, yielding a 1.21% return on cash commitment or an annualized 10.29% return.
On the calls side, a $72.00 strike call contract has a current bid of $1.71. Selling this as a “covered call” could generate a total return of 5.30% if the stock is called away at expiration, provided AZN remains below $72.00. There’s a 58% chance this contract may also expire worthless, allowing the investor to keep both shares and premium, representing a potential yield boost of 2.44% or an annualized 20.74% return.
The implied volatility for the put contract is 33%, while the call contract sits at 26%, compared to the trailing twelve-month volatility of 24% based on the last 250 trading days.
