New Options Open Up for BCE Inc: Potential Strategies for Investors

Investors in BCE Inc (Symbol: BCE) are presented with new options today, set to expire in June 2025. With 246 days remaining until expiration, these newly available contracts could offer put and call sellers the chance to earn higher premiums compared to contracts with shorter expiration dates.

Highlighted Investment Opportunity

One noteworthy option is the put contract at the $33.00 strike price, which currently has a bid of 20 cents. If an investor chooses to sell that put, they commit to buy BCE stock at $33.00 but will also receive the premium. This means that the cost basis for acquiring the shares would effectively be $32.80 (excluding broker fees). For those eyeing BCE shares, this may be a more appealing choice than buying them at the current price of $33.51 each.

Market Position and Potential Outcomes

The $33.00 strike price offers an approximate 2% discount to BCE’s current trading price, meaning the option is slightly out-of-the-money. There’s also a chance that the put contract could expire worthless; analytical data indicates a 49% likelihood of this outcome. Stock Options Channel plans to monitor how these odds evolve over time, providing updates on their website under the contract detail page. If the contract does expire worthless, the premium could generate a 0.61% return on the cash commitment, equivalent to 0.90% annualized—something we refer to as the YieldBoost.

Historical Overview

Below is a chart illustrating the last twelve months of trading activity for BCE Inc., with the $33.00 strike price marked in green for easy reference:

The implied volatility for this put contract is currently at 20%. In contrast, the actual trailing twelve-month volatility—calculated using the last 251 trading days and today’s stock price of $33.51—stands at 18%. For further insights on additional put and call options contracts, visit StockOptionsChannel.com.

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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.