Workday Inc Options Show Potential for Investors

Investors in Workday Inc are exploring new options with a potential YieldBoost. The March 7 contracts include a $245 put and a $255 call contract, providing interesting opportunities amidst the current trading environment.

Date: 23-01-2025

AI Rating: 6

Options Trading Overview

Workday Inc. (WDAY) is currently attracting investor attention as new options contracts begin trading for the March 7th expiration. Key focus contracts include a put at the $245 strike price and a call at the $255 strike price, both featuring attractive features for potential investors.

The $245 put option requires a potential acquisition price of $245 per share, with a current bid premium of $9.40. This translates to a cost basis of $235.60 if opened. With a current stock price of $249.50, this gives investors an approximately 2% discount on the present trading level if they exercise the option. Furthermore, current analytical data suggests a 60% chance of the put expiring worthless, indicating 3.84% return on cash commitment or 32.57% annualized value. This presents a compelling buying alternative for those looking to invest in WDAY shares.

On the call option side, the $255 strike call at a $11.40 bid price allows an investor to sell their stock at this strike if executed. This also holds potential for a total return of 6.77% if shares are called away by the expiration date, which could yield additional returns if WDAY's market price appreciates significantly. Like the put, the call also carries a 2% premium over the current price with a 51% chance of expiring worthless, which would allow investors to retain their shares and gain the premium collected, representing a 4.57% extra return or 38.78% annualized boost.

Moreover, the implied volatility factor for the put option stands at 41%, while that of the call is at 40%, both surpassing the actual trailing twelve month volatility of 33%. This discrepancy in volatility may lead to significant movements in the underlying stock price, impacting potential returns and risk assessment strategies.

Stocks: WDAY