New Options Trading for Riot Platforms Inc Offers Potential Returns
Fresh Opportunities Emerge as Options for May 2025 Become Available
Investors in Riot Platforms Inc (Symbol: RIOT) are now witnessing new options trading for a May 2025 expiration date. With 149 days until these options expire, buyers are motivated by the time value, allowing sellers of puts or calls to potentially earn higher premiums compared to contracts with shorter timeframes. Stock Options Channel utilized its YieldBoost formula to identify one put and one call contract of particular interest among the new May 2025 offerings.
The put contract available at the $13.00 strike price currently has a bid of $3.05. An investor selling this put contract would agree to buy the stock at $13.00 while collecting the premium, effectively lowering their cost basis for the shares to $9.95 (not including broker commissions). For those already looking to invest in RIOT, this cost could be an appealing alternative to the current share price of $13.31.
This $13.00 strike price offers about a 2% discount to the stock’s current trading price, indicating a scenario where the put contract could expire worthless. Current analytical data predicts a 67% chance of this occurring. Stock Options Channel will monitor these odds over time, providing updates on our website. If the put contract expires worthless, the premium would yield a 23.46% return on cash committed, or 57.49% annualized, which we term the YieldBoost.
Below is a chart showing Riot Platforms Inc’s trading history over the past twelve months, with the $13.00 strike highlighted in green:
Evaluating Potential Returns on Call Contracts
Turning to the calls, there is a $15.00 strike price call contract also with a current bid of $3.05. If an investor purchased shares of RIOT at $13.31 and sold this call as a “covered call,” they would be committing to sell the stock at $15.00. This strategy could yield a total return of 35.61% (excluding any dividends) if the stock is called away at the May 2025 expiration (before broker commissions). However, significant potential gains may be left on the table should RIOT shares rise dramatically, making it vital to consider both historical trading patterns and the company’s fundamentals. Below is a chart highlighting RIOT’s trading history, with the $15.00 strike indicated in red:
The $15.00 strike price is approximately a 13% premium over the current trading price, meaning that this covered call could also potentially expire worthless. In that case, the investor would retain both their shares and the collected premium. Current data indicates a 41% chance of this scenario. Our website will continue to track these changing odds and include a detailed trading history of the option contract. If the covered call expires worthless, the premium would signify a 22.92% boost in return for the investor, or 56.15% annualized—also referred to as the YieldBoost.
Current implied volatility for the put contract stands at 109%, while the call contract sits at 104%. In contrast, we calculate the actual trailing twelve-month volatility, based on the last 251 trading days and today’s price of $13.31, to be 93%. For additional options contract ideas, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
