Options Trading Insights for The Trade Desk (TTD) Available

Options trading insights for The Trade Desk (TTD) reveal attractive contracts. The current $115 put and $119 call contracts provide potential investment opportunities, indicating promising returns for investors.

Date: 06-02-2025

AI Rating: 7

Options Trading Overview: The report discusses new options for The Trade Desk Inc (TTD) commencing trading today for expiration on March 28th. Specifically, it highlights a put contract at a $115 strike price and a call contract at a $119 strike price. These options could influence TTD's stock price by providing investors with alternative investment strategies.

Put Contract Insights: The $115.00 put contract offers a current bid of $8.65. Selling this contract would allow an investor to purchase TTD shares at an effective cost basis of $106.35, factoring in the premium received. With the put being out-of-the-money by approximately 1%, the likelihood of it expiring worthless is estimated at 56%. If it does expire worthless, the premium yields a 7.52% return on the cash commitment, or a substantial 54.95% annualized return.

Call Contract Potential: The $119.00 call contract has a bid of $7.85, allowing investors to commit to selling shares at that price while collecting the premium for additional returns. Should TTD reach $119.00 by expiration, investors could see a total return of 9.69%. However, the risk remains that if the share price increases significantly, investors may miss out on further upside. The odds of the call expiring worthless stand at 51% as it currently trades approximately 3% below the strike price. If this contract also expires worthless, the premium would yield a 6.79% additional return or an annualized 49.60% yield.

Volatility Factors: The implied volatility of both put and call contracts is noted at about 55%, compared against a calculated trailing twelve month volatility of 41%. High implied volatility can impact option pricing, indicating investor speculation about future stock price movements.

Stocks: TTD