Peabody Energy Corp (NYSE: BTU) launched new options trading on August 8, 2023. An interest has been noted in the $13.50 strike price call contract, which currently has a bid of $0.79. With BTU shares priced at $12.85, investors purchasing the stock and selling this call contract could achieve a total return of 11.21% if the stock is called away at expiration.
The $13.50 strike represents a 5% premium to the current stock price, with a 50% probability that the covered call will expire worthless. In such a case, the investor would retain both the shares and the premium, translating to a potential 6.15% additional return or an annualized 52.19% YieldBoost. The call contract’s implied volatility is reported at 89%, while the trailing twelve-month volatility stands at 52%.
