Options Trading Insights: GoDaddy Inc (GDDY) Moves

New options for GoDaddy Inc have begun trading, offering potential investment strategies. With a 1% discount on put contracts and a 2% premium on calls, investors have attractive alternatives. The possibility of contracts expiring worthless also raises unique investment opportunities.

Date: 06-02-2025

AI Rating: 6

Options Activity: GoDaddy Inc (GDDY) has initiated new options trading, including put and call contracts that could impact stock trading strategies. The put contract at a $210 strike price indicates a 1% discount compared to the current stock price, providing potential value for investors willing to purchase shares at a reduced basis after premiums. The strategy to sell-to-open this contract could yield a 4.05% return on commitment if the put expires without being exercised.

The odds of the put contract expiring worthless sit at 56%. Investors looking to capture this yield should be mindful of the risk, as market conditions can shift the value of the stock significantly before the expiration date.

Call Contracts: Furthermore, a call contract at a $215 strike represents a 2% premium to the current stock price. Selling this as a covered call offers the potential for a 5.74% return if executed by March 28. The chance of this call contract expiring worthless is 51%, meaning investors could retain their stock and still profit from the premium.

Volatility Insights: The implied volatility for the put is at 38%, while it is slightly lower at 36% for the call. Comparatively, GDDY's actual trailing twelve-month volatility has been calculated at 23%. These volatility figures are critical for evaluating risk and potential return on investment.

Stocks: GDDY