Galaxy Digital Options Trading: Key Strategies for Investors

Investors in Galaxy Digital Inc (GLXY) anticipate new opportunities as options begin trading. The put and call contracts present interesting strategies, potentially leading to attractive returns. Understanding these options can guide investor decisions ahead of the July 11th expiration.

Date: 29-05-2025

AI Rating: 6

**Analysis of Galaxy Digital Options**
In the analysis of Galaxy Digital Inc's recent trading activity, significant attention to its options chain reveals multiple opportunities for professional investors. The newly traded put contract at a $20.00 strike price, with a bid of $2.05, requires careful consideration. Selling this put obligates the investor to purchase shares at $20.00, effectively reducing their cost basis to $17.95 post-premium. This appears favorable, particularly given the current price of $20.12, indicating an attractive entry point for investors keen on acquiring GLXY shares without paying the full market price.

The call contract at the $21.00 strike price, meanwhile, allows an investor to engage in a covered call strategy. By purchasing shares at $20.12 and selling the call, investors can achieve a total return of 15.56% if the shares are called away, notwithstanding any potential price appreciation beyond this level. The fact that this call is positioned at a 4% premium suggests a solid potential upside, but it also warrants caution due to the risk of missing out on further gains above this strike price.

**Investments Risk and Volatility**
The option contracts exhibit notable implied volatility, especially the put at 100% and the call at 115%. Such high volatility reflects market uncertainty regarding Galaxy Digital's stock price fluctuations and poses heightened risk. Of particular note, the trailing twelve-month volatility at 89% aligns closely with the option pricing, thus justified under certain market conditions.

In summary, while this report does not specifically address Earnings Per Share (EPS), Revenue Growth, Net Income, Profit Margins, Free Cash Flow, or Return on Equity for Galaxy Digital Inc, the options strategies highlighted could influence investor sentiment significantly. The assessed odds of a put expiring worthless are 57%, and for the call, 47%. These probabilities emphasize a balanced approach between risk management and the potential for profit within the given timelines of the contracts.

Stocks: GLXY