StepStone Group Sees New Call Options Amidst Volatility

StepStone Group Inc introduces options set for May 16th, focusing on a $55 call. With a current stock price of $54.24, investors eye potential 5.37% returns. The implied volatility stands at 45%, indicating market uncertainty.

Date: 21-03-2025

AI Rating: 6

Options Availability and Returns
StepStone Group Inc has new options available for the May 16th expiration, which could impact investor sentiment and potentially stock prices. The available call contract is priced with a $55.00 strike and offers a premium, indicating a possible total return of 5.37% if exercised.

This possibility could attract investors looking for moderate returns while committing to sell their shares at $55. This strike price represents about a 1% premium over the current trading price of $54.24, and there’s a 45% chance the covered call will expire worthless, allowing investors to retain both their shares and premium, potentially leading to a significant annualized return of 25.84%.

Volatility Considerations
The implied volatility of 45% suggests heightened uncertainty in stock price movements, while the actual trailing twelve-month volatility stands at 39%. Higher volatility affects option pricing and can lead to fluctuating stock prices, impacting investor strategies.

Stocks: STEP