New Options Begin Trading for Chord Energy Corp as Investors Explore Strategies

Investors in Chord Energy Corp (Symbol: CHRD) can now trade options set to expire on December 19, marking a new opportunity within the options market. With 289 days until expiration, these contracts offer sellers of puts or calls the chance to command higher premiums compared to options with nearer expiration dates. The YieldBoost formula from Stock Options Channel identifies key contracts among the new CHRD offerings, highlighting both a put and a call that stand out.

Analysis of the $100 Put Contract

The $100.00 strike price put contract currently bids at $9.80. If an investor sells-to-open this put, they commit to buying the stock at $100.00 but receive the premium, effectively lowering the acquisition price to $90.20 (excluding broker fees). For those looking to buy CHRD shares at today’s price of $101.16, this could be an appealing alternative.

Since the $100.00 strike price represents roughly a 1% discount from the current trading price, there is a 53% chance, according to current analytical data including the greeks and implied greeks, that this put contract may expire worthless. Stock Options Channel will monitor these odds over time, providing a chart of this data on their contract detail page. If the option does expire worthless, the premium would yield a 9.80% return on cash committed, annualized to 12.38%, a value termed as YieldBoost.

Below is a chart showing the trailing twelve-month trading history for Chord Energy Corp, indicating where the $100.00 strike price falls relative to historical trading performance:

Exploring the $105 Call Contract

On the calls side, the $105.00 strike price call contract currently offers a bid of $8.20. If an investor buys shares of CHRD at the prevailing price of $101.16 and sells-to-open this call as a “covered call,” they would be agreeing to sell the stock for $105.00. This action, while also collecting the premium, could potentially culminate in an overall return of 11.90% if the stock is called away at expiration (before broker fees). However, should CHRD’s shares significantly rise, the investor might miss out on additional gains. Thus, reviewing the trailing 12-month trading history and examining the company’s fundamentals is crucial.

The next chart displays CHRD’s trailing twelve-month trading history, highlighting the $105.00 strike in red:

The $105.00 strike represents about a 4% increase over the current stock price, indicating a potential risk that the call contract could also expire worthless. Should this happen, the investor retains both the shares and the premium. Current data suggests a 51% chance of this scenario based on analytical considerations, which Stock Options Channel will track, updating the odds over time on their contract detail page. If the covered call expires worthless, the premium translates to an 8.11% extra return or an annualized rate of 10.24%, also categorized as YieldBoost.

Regarding volatility, the put contract has an implied volatility rate of 32%, while the call example stands at 39%. The actual trailing twelve-month volatility, considering the past 250 trading days and today’s price of $101.16, is 27%. For more insights into various put and call options, visit Stock Options Channel.

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Also see:

• PL Split History
• NAI Videos
• GENT Historical Stock Prices

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