Opportunities in December 2026
Today, new options for the December 2026 expiration began trading for Ford Motor Co. (Symbol: F), creating an intriguing opportunity for the investors. With 1074 days until expiration, the new contracts provide potential for sellers of puts or calls to attain a premium that may not be available for contracts with a closer expiration.
Exploring Put Options
A put contract at the $8.00 strike price has a current bid of $1.03. Selling-to-open that put contract signifies a commitment to purchase the stock at $8.00, while also collecting the premium, thereby putting the cost basis of the shares at $6.97 (before broker commissions). This represents a compelling alternative for investors considering purchasing shares of F at the current price of $11.85/share.
The $8.00 strike reflects an approximately 32% discount to the current trading price of the stock, suggesting the possibility of the put contract expiring worthless. Analytical data currently suggest the odds of that happening are 99%. This statistical likelihood will be tracked over time by Stock Options Channel, presenting valuable insights for investors. Whether the contract expires worthless or not, the premium would yield a 12.88% return on the cash commitment or 4.38% annualized, referred to as the YieldBoost.
The Calls Side
On the calls side, the call contract at the $12.00 strike price has a current bid of $2.09. Investors purchasing shares of F stock at the current price level of $11.85/share can sell-to-open that call contract as a “covered call,” committing to sell the stock at $12.00. This strategy could generate a total return of 18.90% (excluding dividends, if any) at the December 2026 expiration.
The scenario of the $12.00 strike represents an approximate 1% premium to the current trading price of the stock, indicating the potential for the covered call contract to expire worthless. The current analytical data suggest the odds of that happening are 99%. The premium, in this case, would represent a 17.64% additional return to the investor, or 5.99% annualized, known as the YieldBoost.
Market Volatility and Prospective Analysis
The actual trailing twelve-month volatility is calculated to be 36%, underlining the significance of exploring put and call options contract ideas at this juncture. For further insights, investors are urged to visit StockOptionsChannel.com.
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