Airbnb Options Trading Sheds Light on Stock Outlook

Investors eyeing Airbnb Inc (ABNB) options can find attractive plays as new contracts trade. The analysis indicates potential returns and an intriguing discount, indicating how the stock may unfold in the short-term.

Date: 24-04-2025

AI Rating: 7

Short-Term Options Analysis for Airbnb Inc (ABNB)

The recent market activity surrounding Airbnb Inc (ABNB) showcases new options trading strategies that may attract investors. The focus on the put contract at the $117 strike price, with a premium of $6.50, presents a strategic opportunity for potential buyers. Collecting the premium lowers the effective purchase price to $110.50, delivering a 3% discount compared to the prevailing stock price of $120.35.

Investors looking at this put option have a 59% chance that the option expires worthless, allowing them to maintain their cash while gaining potential stock ownership at a reduced cost. This outcome would yield a 5.56% return on cash commitment, or 47.16% annualized, a promising indication for conservative investors.

Additionally, the call contract at the $122 strike price offers another investment angle. With the call carrying a current bid of $6.05, those purchasing ABNB shares could sell a covered call and secure a total return of 6.40% (prior to brokerage fees) if exercised. This presents a moderate upside for those optimistic about the stock's performance surrounding the expiration date.

The implied volatility for the puts (56%) is notably higher than that of the calls (47%), signifying greater market expectations for potential price swings. Meanwhile, the actual yearly volatility stands at 41%, revealing some stabilizing factors in price movement.

Stocks: ABNB