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New Options Trading for Fiserv Inc Offers Investor Opportunities

Investors are presented with new options for Fiserv Inc. The put and call contracts indicate potential strategies for returns, with a focus on price discounts and annualized yields. Options trading starts for June 2026 contracts.

Date: 
AI Rating:   7
Options Trading for Fiserv Inc (FI)
New options for Fiserv Inc offer investors an interesting opportunity, specifically with put and call contracts showing differentiated premiums and potential returns. The put contract at a $210 strike price, currently has a premium of $19.10, allowing investors to set a lower cost basis if they are willing to purchase shares at this price. This effectively offers a 2% discount from the current trading price of $213.56, attractive for potential buyers who may opt for this strategy.

The 65% probability that the put contract may expire worthless could represent a 9.10% return on cash commitment, annualized to 7.15%, a signal of reliable income flow if these expectations hold. In contrast, the $230 call strike price option offers a premium of $23.10, pushing the potential total return to 18.51% should the stock be called away by expiration. However, there exists an inherent risk, as with the possibility of the call contract expiring worthless (46% chance), the premiums would then present a robust 10.82% return boost to the investor's yield.

The current implied volatility rates at 29% for put contracts and 26% for call contracts reflect an anticipatory price range, while the trailing twelve-month volatility sits at a humble 21%. This context provides a layered perspective for investors considering these options contracts, emphasizing the strategic evaluations they may need to undertake moving forward.
Stocks:  FI