Investors in the Select Sector SPDR Trust – State Street Energy Select Sector SPDR ETF (XLE) will see new options trading starting today for contracts expiring on June 12. Notable contracts include a put option at a $57.50 strike price with a current bid of $0.08 and a call option at a $59.50 strike price with a bid of $1.96.
The put option represents a 2% discount to the current trading price of $58.90 and carries a 62% probability of expiring worthless, offering a potential 0.14% return or 1.18% annualized if it does. Conversely, the call option, which signifies a 1% premium above the current price, has a 50% chance of expiring worthless and could yield a 3.33% return or 28.25% annualized under those circumstances.
The options chain indicates an implied volatility of approximately 32%, while the actual trailing twelve-month volatility is calculated at 20%.
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