Amazon Unveils New Options for June 2027: Opportunities Await

Investors in Amazon.com Inc (Symbol: AMZN) have new options available today for expiration in June 2027. With 892 days until these options expire, they present a potential opportunity for sellers of puts or calls to earn higher premiums than those with shorter expiration periods. Stock Options Channel has analyzed AMZN’s options chain and pinpointed one put and one call contract that stand out.

Put Option at $225 Strike Price

The put contract at the $225.00 strike price currently bids at $32.00. If an investor sells this put contract, they commit to purchasing shares at $225.00 but collect the premium upfront. This would effectively lower their cost basis to $193.00 per share (excluding broker commissions). For investors looking to buy AMZN stock, this option offers a potentially attractive alternative to the current market price of $226.42 per share.

This $225.00 strike is approximately a 1% discount to today’s trading price, meaning it is slightly out-of-the-money. Current data suggest a 68% chance that this put contract could expire worthless. Stock Options Channel will monitor these odds over time, providing updates on their website. If the put expires worthless, the premium collected would yield a 14.22% return on the cash commitment, or an annualized return of 5.82%. We refer to this outcome as the YieldBoost.

Call Option at $275 Strike Price

On the calls side, there’s a call contract available at a $275.00 strike price with a current bid of $35.00. If an investor buys AMZN shares at $226.42 each and sells this call as a “covered call,” they agree to sell the stock at $275.00. Including the premium collected, this strategy could yield a total return of 36.91% if the shares are called away by the June 2027 expiration (before taking broker commissions into account). It’s important to evaluate AMZN’s past trading history and business fundamentals, as significant price increases could result in missed opportunities if they outperform.

The $275.00 strike represents a roughly 21% premium over the current trading price, placing it out-of-the-money by that same percentage. There’s a 47% chance that this covered call might expire worthless in which case the investor retains their shares and the premium. Stock Options Channel will also update these odds on their website. If the contract does expire worthless, the premium would provide a 15.46% additional return or an annualized yield of 6.33%, also termed as YieldBoost.

For context, the implied volatility for the put contract is 34%, while the call contract has an implied volatility of 33%. Meanwhile, the trailing twelve months volatility, calculated from the last 250 trading days ending with today’s price of $226.42, stands at 28%. For more insights on other put and call options worth exploring, visit StockOptionsChannel.com.

Top YieldBoost Calls of the Nasdaq 100 »

Related Resources:

• GEQ Videos
• Institutional Holders of SNE
• Institutional Holders of JEMB

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