Investors in the Vanguard Information Technology ETF (Symbol: VGT) gained access to new options for January 2028 today. Notable contracts include a put at the $95.00 strike price, currently priced at a bid of $6.00. This put contract, representing a 15% discount on VGT’s current trading price of $112.40, allows sellers to potentially purchase shares at a lower adjusted cost of $89.00. Current analysis indicates a 77% likelihood that the option could expire worthless, yielding a potential 6.32% return on cash commitment (3.73% annualized).
Additionally, a call option at a $120.00 strike price is available at a bid of $13.80. If an investor sells this call while holding shares bought at $112.40, it could result in a total return of 19.04% if the stock is called away by January 2028. There is a 44% chance that this contract may also expire worthless, allowing investors to retain both the shares and premium collected, translating to a potential 12.28% extra return (7.25% annualized).
Implied volatility for the put is 32% and 28% for the call, while the actual trailing twelve-month volatility stands at 20%.
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