Investors in Intel Corp (NASDAQ: INTC) saw new options begin trading on August 19, 2023, with a notable put contract at the $95.00 strike price currently bidding at $4.05. This strategy allows an investor to purchase shares at an effective cost basis of $90.95, offering a 4% discount from the current trading price of $98.45. The probability of this put option expiring worthless is approximately 62%, with the potential to yield a 4.26% return on cash commitment, or an annualized return of 103.74%.
Additionally, a call contract at the $100.00 strike price has a bid of $4.95. If executed as a covered call, this would obligate an investor to sell at $100.00, leading to a total return of 6.60% if exercised. The likelihood of this call option expiring worthless stands at 50%, which could still deliver a 5.03% boost in return, or an annualized 122.35%.
The implied volatility for the put and call contracts is 84% and 85%, respectively, while the trailing twelve-month volatility is calculated at 77%.
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