Generac Holdings Options Expiration: June 2026 Contracts Available
Investors in Generac Holdings Inc (Symbol: GNRC) can now access options with a June 2026 expiration. With 381 days remaining until expiration, these contracts provide an opportunity for sellers of puts or calls to secure higher premiums compared to shorter-term contracts.
The noteworthy put contract at a $115.00 strike price currently bids $12.80. Selling this contract obligates the investor to buy shares at $115.00, while the premium received reduces the net cost basis to $102.20 per share, a potential savings compared to the current trading price of $118.44.
Since the $115.00 strike is approximately 3% below the current market price, the put contract could expire worthless, with current data indicating a 66% chance. If it does expire worthless, the premium equates to an 11.13% return on cash commitment, or 10.66% annualized.
Below is a chart displaying Generac’s trailing 12-month trading history, with the $115.00 strike highlighted:
On the calls side, a $135.00 strike price call contract has a current bid of $13.50. Purchasing GNRC shares at $118.44 and selling this call would commit the investor to sell at $135.00. The total return could reach 25.38% if the shares are called away at expiration, excluding any dividends.
The $135.00 strike is about 14% above the current trading price, which means there’s a chance this covered call may expire worthless, allowing the investor to retain both shares and premiums. Current odds of this happening sit at 49%. If the contract expires worthless, the premium would enhance overall return by 11.40%, or 10.92% annualized.
Implied volatility for the put contract stands at 42%, while the call contract’s implied volatility is at 40%. The actual trailing twelve-month volatility, calculated from the last 249 trading days and the current price of $118.44, is 39%. For more put and call options ideas, additional resources are available.
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Also see:
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- GCM 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.
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