New Options for Stryker Corp Could Boost Investor Returns

Investors in Stryker Corp are exploring new options with expiration in March 2026. Trading commenced for both put and call contracts, which may provide opportunities for better premiums and returns for investors interested in SYK stock.

Date: 28-01-2025

AI Rating: 7

Options Trading Analysis

New options for Stryker Corp (SYK) have begun trading for the March 2026 expiration, giving investors new opportunities for higher premiums. The put contract at the $390 strike has a current bid of $25.50, and if sold to open, investors would be committing to buy the stock at $390 while keeping the premium, effectively lowering the cost basis to $364.50. This represents a potential discount of about 2% compared to the current trading price of $398.17.

The chances of the put contract expiring worthless are estimated at 64%, allowing investors to capture a return of 6.54% on cash commitment, which annualizes to 5.74%—a figure referred to as the YieldBoost.

On the call side, the $430 strike price call contract has a current bid of $28.00. Purchasing SYK at $398.17 and selling that call would allow for a total return of 15.03% if exercised. However, the call's chances of expiring worthless currently rest at 52%, allowing the investor to keep the stock and the premium, contributing an additional 7.03% in return or 6.17% annualized.

Implied volatility stands at 23% for the put and 22% for the call, while the actual trailing twelve-month volatility for SYK is calculated to be 19%. This data indicates the options market is reflecting a higher expectation of short-term movement in the stock price than is evident from historical data.

Stocks: SYK