New Options Trading Opportunities Emerge for MetLife Inc Investors

MetLife’s $80 Put Contract Offers Attractive Discount

Investors in MetLife Inc (Symbol: MET) noticed new options begin trading today for expiration in December 2027. With 1,039 days until expiration, the newly listed contracts may provide sellers of puts or calls a chance to earn a higher premium compared to options with shorter expiry dates. Stock Options Channel has identified one particular put and one call contract worth examining within the MET options chain.

The put contract at the $80.00 strike price has a current bid of $8.00. If an investor sells this put contract, they agree to buy the stock for $80.00 and collect the $8.00 premium. This effectively reduces the cost basis of the shares to $72.00 (excluding broker commissions), making it an appealing option for those planning to purchase MET stock at the current price of $82.75 per share.

Decoding the Odds of Expiration and YieldBoost Returns

The $80.00 strike price reflects roughly a 3% discount from the current trading price, classifying it as out-of-the-money. Analytical data indicates a 66% likelihood that the put contract will expire worthless. Stock Options Channel plans to monitor these odds over time, publishing updates on their website. If the put contract does expire worthless, the premium would yield a 10.00% return on the cash commitment or an annualized rate of 3.51%, a figure we refer to as the *YieldBoost*.

Below is a chart capturing the trailing twelve-month trading history for MetLife Inc, with the $80.00 strike highlighted in green:

Potential Gains from the Call Contract

Examining the call option side, the contract at the $92.50 strike price currently has a bid of $9.00. Should an investor purchase MET shares at the current price of $82.75 and simultaneously sell a covered call, they would commit to selling the stock at $92.50. In addition to the premium received, this strategy could yield a total return of 22.66% if the shares are called away at the December 2027 expiry (before broker commissions). Reviewing MetLife’s trading history and analyzing business fundamentals becomes crucial to avoid missing out on potential gains if the stock price rises significantly.

Below is a chart showing MET’s trailing twelve-month trading history, with the $92.50 strike highlighted in red:

Considering that the $92.50 strike price represents a 12% premium over the current trading price, there’s a chance the covered call could also expire worthless. In this case, the investor would retain their shares and the collected premium. The current data suggests a 47% likelihood of this outcome. Stock Options Channel will continue tracking these odds and provide updates on their website. Should the covered call expire worthless, the premium would represent a 10.88% additional return for the investor, or 3.82% annualized, another instance of *YieldBoost*.

The implied volatility for the put contract is currently 27%, while the implied volatility for the call contract stands at 26%. Additionally, our calculation of actual trailing twelve-month volatility, based on the last 250 trading days and today’s price of $82.75, is at 21%. For further options contract ideas, visit StockOptionsChannel.com.

Top YieldBoost Calls of Stocks Conducting Buybacks »

Also see:

• Hedge Fund Activity Among Individual Components
• VNM Videos
• CSTR Options Chain

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