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Glaukos Corp Options Spotlight: New Strategies for Investors

Investors eye new Glaukos Corp options with August expirations, highlighting potential profitability through covered calls and puts in anticipation of stock movements. Assessing both strategies reveals promising returns and volatility indicators.

Date: 
AI Rating:   7
Options Trading Opportunities
Investors in Glaukos Corp (GKOS) are presented with new options that can serve as strategic investment tools. The availability of the put and call options expiring on August 15th allows for different methods of capitalizing on GKOS stock pricing.

Glaukos's $90.00 put option is a notable highlight, with a current bid of $7.10, allowing investors to achieve a lower cost basis of $82.90 if exercised. This represents a discount on the current trading price of $90.94, allowing an investment vehicle that could yield a substantial 7.89% return on cash commitment if it expires worthless. This return translates to an impressive 29.38% annualized yield boost, indicating a relatively attractive opportunity for risk-tolerant investors looking to enter at a discounted rate.

On the call side, the option at the $95.00 strike price, with a current bid of $7.00, provides an opportunity to generate a total return of 12.16% if the stock is called away. The generous premium illustrates the profitability potential of this covered call strategy, again emphasizing Glaukos's options as worth consideration.

**Implied Volatility**
The implied volatility of the put option at 54% compared to 51% for the call option suggests that market participants foresee significant pricing fluctuations. Historically, the trailing volatility calculated over 250 trading days being 49% indicates a healthy level of uncertainty. This volatility underpins the attractiveness of the options, making them viable for those looking to hedge or speculate.

**Strategic Consideration**
Given the calculated odds—59% for the put option to expire worthless and 49% for the call—investors must weigh these probabilities in conjunction with their capital risk exposure. The option strategies leveraged here can be particularly effective for investors with a short to medium-term horizon, looking to engage with Glaukos stock amidst its fluctuating market dynamics.
Stocks:  GKOS