New Options for Scorpio Tankers Present Investment Opportunities
September 2025 Options Trading Starts for STNG
Investors in Scorpio Tankers Inc (Symbol: STNG) have the opportunity to trade new options expiring in September 2025 starting today. One important factor affecting option prices is time value. With 270 days remaining until expiration, these newly launched contracts might offer sellers of puts or calls a chance to earn higher premiums compared to shorter-term options.
Our YieldBoost formula at Stock Options Channel examined the STNG options chain and pinpointed a put and call contract that stand out. The put contract with a strike price of $47.50 currently has a bid of $4.30. If investors sell to open this put contract, they’ll agree to buy the stock at $47.50, in exchange for the premium. This effectively lowers their cost basis to $43.20 (before broker fees). For those interested in acquiring STNG shares, this could be a more attractive option than buying at the current price of $49.14 per share.
The $47.50 strike price is about a 3% discount from the current stock price, meaning it is currently out-of-the-money by that amount. Analysts estimate there is a 60% chance that this put option will expire worthless. Stock Options Channel will monitor these odds and publish updates on our website, showing how these numbers change over time. If the contract does expire worthless, the premium collected would represent a 9.05% return on the cash set aside, or an annualized yield of 12.24% — a metric we call YieldBoost.
Below is a chart depicting the past twelve months of trading activity for Scorpio Tankers Inc, with the $47.50 strike price highlighted in green:
Exploring Call Options: Strategy for Potential Gains
On the call side of the options chain, the contract with a $50.00 strike price is currently bid at $4.40. An investor buying STNG shares at the current market price of $49.14 per share could sell to open this call as a “covered call.” This means they would agree to sell the stock at $50.00, and with the premium collected, they’d achieve a total return of 10.70% if the stock is exercised at the September 2025 expiration (excluding any dividends and before commissions).
However, selling a covered call could limit potential gains if STNG shares increase significantly. Thus, reviewing the last twelve months of trading performance and understanding the company’s fundamentals is essential. The chart below shows STNG’s trading history, with the $50.00 strike highlighted in red:
The $50.00 strike represents about a 2% premium to the current stock price, placing it out-of-the-money by this percentage. There is also a risk that this covered call may expire worthless, allowing the investor to retain both the shares and the premium. Current data suggest a 46% probability of this scenario. Over time, Stock Options Channel will track these odds and publish updates regarding the trading history for this option contract on our website. If the covered call does indeed expire worthless, the premium would yield an extra 8.95% return for the investor, or an annualized rate of 12.11%, which is also labeled as YieldBoost.
The implied volatility for the put contract is currently 43%, while for the call, it sits at 41%. In contrast, the trailing twelve-month volatility, based on the last 250 closing prices and today’s stock price of $49.14, is at 29%. For more options strategies and ideas worth exploring, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
Also see:
- CETU Historical Stock Prices
- PBA Price Target
- FRP Price Target
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
