New Options for GoDaddy Inc: Potential Returns for Investors

Investors in GoDaddy Inc (GDDY) can explore new options for the November 1st expiration, which may present interesting investing opportunities with varying risk and return profiles, as outlined in a recent report.

Date: 12-09-2024

AI Rating: 7

The report details the availability of new options for GoDaddy Inc (GDDY), observing interest in both put and call contracts for the November 1st expiration. Investors need to consider the financial implications of these contracts on stock pricing.

For the put contract at the $149.00 strike price, the current bid is $3.10. Investors selling to open this contract would effectively lower their purchase price of GDDY shares to $145.90 if executed, as they would keep the premium. This represents a potential 2% discount to the current trading price of $152.40. Notably, the likelihood of this put contract expiring worthless is 61%, allowing investors to secure a return of 2.08% on the cash involved, equating to an annualized yield of 15.19%.

On the calls side, the $155.00 strike price call contract shows a current bid of $3.90. By purchasing shares at $152.40 and selling this covered call, investors may realize a total return of 4.27% at expiration assuming the GDDY stock gets called away. However, if the option expires worthless (probability of 53%), the investor retains both the shares and the premium collected, translating to a 2.56% extra return or an annualized 18.68% yield.

The implied volatility rates of 31% for the put and 29% for the call indicate different market expectations and risk assessments regarding the stock's price movements.

Overall, the introduction of these new options has the potential to influence GDDY's stock price depending on investor behavior and market conditions, particularly with attractive returns on premiums that could entice buying or selling pressure.

Stocks: GDDY