Investors in Western Digital Corp (WDC) saw new options trading available today for December 2028 expiration. Notably, a put contract at the $260 strike price offers a current bid of $103.50, allowing sellers to commit to purchasing shares at that price. Given WDC’s current share price of $269.07, this could effectively reduce the cost basis to $156.50 if the contract is exercised. The odds of this put expiring worthless are approximately 70%, potentially yielding a 39.81% return on cash commitment (or 14.29% annualized).
Additionally, a call contract at the $290 strike price is available with a current bid of $121.00. Should investors purchase shares at the current price of $269.07 and sell this call, they would agree to sell at $290.00. The total return could rise to 52.75% if the shares are called away by the December 2028 expiration. The likelihood of this call expiring worthless sits around 23%, which could still yield a 44.97% additional return (or 16.14% annualized) if it does.
Implied volatility for the put is at 69% while the call sits at 103%. Trailing twelve-month volatility is calculated at 64%, based on the last 251 trading day closing values.
