New Options Open Up for Civitas Resources Investors
Explore the Latest Opportunities in Civitas Options Trading
Investors of Civitas Resources Inc (Symbol: CIVI) were presented with new options today, set to expire in March 2025. As options pricing is influenced by factors such as time value, these newly available contracts give sellers of puts or calls a chance to earn higher premiums compared to contracts with nearer expiration dates. Using our YieldBoost formula, Stock Options Channel has scanned the CIVI options chain to highlight one put and one call contract of interest.
The put contract at the $50.00 strike price is currently bidding at $1.20. If an investor chooses to sell-to-open this put contract, they will agree to buy the stock at $50.00 while collecting the premium, leading to a cost basis of $48.80 (excluding broker commissions). For someone looking to buy CIVI shares, this option may be more appealing than the current share price of $51.45.
With the $50.00 strike price being about 3% below the present stock price, there’s a chance that the put contract could expire worthless. Analytical data shows a 57% probability of this occurring, and Stock Options Channel will closely monitor these odds, providing updates on our website. If the contract does expire without value, the premium amounts to a 2.40% return on the cash commitment, equating to an annualized return of 7.62% — a concept we refer to as the YieldBoost.
Below is a chart displaying the trailing twelve-month trading history for Civitas Resources Inc, with the $50.00 strike price marked in green:
On the calls side, the contract at the $52.50 strike price has a current bid of $1.45. If an investor buys shares of CIVI at the current price of $51.45 each and sells-to-open this call contract, they will be agreeing to sell the stock at $52.50. Including the premium collected, this would yield a total return of 4.86% if the stock is called away at the March 2025 expiration (before broker commissions). It is essential to consider the previous trading history alongside the company’s fundamentals to avoid missing out on potential profit.
Here is a chart showing CIVI’s trailing twelve-month trading history, with the $52.50 strike highlighted in red:
Given that the $52.50 strike represents a 2% premium to the current stock price, there’s a possibility that the covered call could expire worthless, allowing the investor to retain both their shares and the collected premium. Current data indicate a 52% chance of this outcome, and as with the put contracts, Stock Options Channel will track changes in these odds over time. Should the covered call contract expire without value, the premium offers an additional 2.82% return to the investor, or a significant 8.95% annualized, again referred to as the YieldBoost.
The implied volatility for the put contract is 33%, while the call contract’s implied volatility stands at 37%. Meanwhile, the actual volatility measured over the last twelve months, considering the last 252 trading days and today’s price of $51.45, is at 31%. For further options contract ideas, visit StockOptionsChannel.com.
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Also see:
- ETFs Holding OEC
- MCHI Dividend History
- MTCH Technical Analysis
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
