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New Prologis Options Present Investment Opportunities

Investors have new options from Prologis Inc (PLD) as of today. With June 2026 expiration dates, these options present potential premium opportunities for both call and put options, but a careful analysis of market volatility and pricing is crucial.

Date: 
AI Rating:   7
Options Contracts Overview
Investors in Prologis Inc (PLD) are presented with new options, including a put contract with a strike price of $115.00 and a call contract priced at $120.00 for June 2026 expiration. These options allow investors to engage in strategic investment decisions based on current stock pricing and market volatility.

**Put Contract Analysis**
The put contract at a $115.00 strike price, which has a current bid of $10.00, suggests that if an investor sells this option, they would effectively be committing to purchase the stock at $115.00, while collecting a premium. Thus, the cost basis would be $105.00. Given that this price is approximately 2% below the current trading price of $117.64, investors may find this option appealing, especially as the odds of the contract expiring worthless stand at 61%. Should the contract expire worthless, this could yield an 8.70% return on the cash commitment, which annualizes to 6.84%.

**Call Contract Analysis**
In contrast, the call contract at a $120.00 strike price offers a current bid of $13.20. If investors purchase PLD shares at $117.64 and sell this option as a covered call, they would commit to sell at $120.00, potentially achieving a total return of 13.23% if the stock is called away. The odds of this contract expiring worthless are noted at 44%, allowing investors to profit from both premiums and maintain their shares if it does not reach the strike price. This could represent an 11.22% extra return or 8.83% annualized return if the contract's premium is realized.

The implied volatility of both contracts is approximately 29%, alongside a trailing twelve month volatility of 26%. These volatility metrics are crucial for investors to gauge market behavior and potential risk when considering options trading with Prologis.
Stocks:  PLD