New Options Open for JPMorgan Investors: Exploring Put and Call Contracts
Investors in JPMorgan Chase & Co. (Symbol: JPM) can now explore newly available options that extend to June 2026. With 541 days remaining until expiration, these contracts may offer sellers a chance to earn higher premiums compared to contracts set to expire sooner. Stock Options Channel has identified one interesting put and one call contract in this newly available series.
Examining the Put Contract at $235.00
The put contract with a strike price of $235.00 has a current bid of $19.75. If an investor chooses to sell this put option, they agree to buy the stock at $235.00, while also collecting the premium. This results in a cost basis of $215.25 for the shares (excluding broker commissions). For those looking to buy JPM shares, this could be an appealing alternative to purchasing them directly at the current price of $240.60 per share.
Notably, the $235.00 strike price offers approximately a 2% discount from the current trading price, meaning it is currently out-of-the-money by that percentage. Data analysis suggests a 63% chance that this put contract could expire worthless. Stock Options Channel will monitor these odds and publish updates on its website. If it does expire worthless, investors would receive an 8.40% return on their cash commitment, translating to 5.67% annualized – a metric referred to as YieldBoost.
Call Contract Analysis at $255.00
On the call side, the $255.00 strike price has a bid of $22.60. Should an investor purchase JPM shares at $240.60 and opt to sell the call contract as a “covered call,” they commit to sell the stock at $255.00. By adding the premium to this amount, the potential total return could reach 15.38% (before broker commissions) if the stock is called away by June 2026. However, significant upside may remain if JPM shares increase significantly, highlighting the importance of reviewing the company’s trading history and fundamentals.
The following chart provides insight into JPMorgan’s twelve-month trading history, with the $255.00 strike highlighted in red:
This $255.00 strike price stands about 6% higher than the current trading price. Therefore, there’s a risk the covered call will expire worthless, allowing the investor to keep both their shares and the premium collected. Current analytics indicate a 48% chance of this happening. Similar to the put options, Stock Options Channel will keep track of this probability over time. If the call contract expires worthless, it would offer an extra return of 9.39%, or 6.34% annualized, best understood as another aspect of YieldBoost.
Understanding Volatility
In the case of the put contract, the implied volatility is 25%, while the call contract’s implied volatility is slightly lower at 24%. The actual trailing twelve-month volatility, based on the last 251 trading days and today’s price of $240.60, is measured at 23%. For additional options contract ideas, consider visiting StockOptionsChannel.com.
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Also see:
- INVH YTD Return
- CMLS market cap history
- IDTI shares outstanding history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
