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CenterPoint Energy, Inc (CNP) began trading new options today for a January 2028 expiration, featuring a put contract at a $37.00 strike price with a current bid of $1.65. Investors opting to sell this contract would commit to purchasing shares at $37.00, effectively lowering the cost basis to $35.35, compared to the current trading price of $38.28, representing a 3% discount. The likelihood of this put contract expiring worthless is estimated at 64%.
Additionally, a call contract at a $40.00 strike has a current bid of $2.00. If investors purchase CNP shares at $38.28 and sell this covered call, they could achieve a total return of 9.72% at expiration. This strike represents a 4% premium to the current trading price, with a 45% chance of expiring worthless. The premium could result in a 5.22% return boost for investors if the call contract does not get exercised.
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