Investors in CF Industries Holdings Inc (CF) saw the introduction of new options available for expiration on July 17th, offering potential opportunities due to a time frame of 93 days until expiration. A notable put contract at a $115 strike price has a current bid of $7.00, allowing sellers to set a cost basis of $108.00 if sold-to-open; this represents a 4% discount from the current trading price of $119.48. The likelihood of this put expiring worthless is estimated at 62%, potentially yielding a 6.09% return on cash commitment.
On the call side, a $125 strike price contract currently bids at $8.00. If an investor buys shares at $119.48 and sells-to-open this covered call, they face a total return of 11.32% if the stock is called away by July 17th. This contract carries a 52% chance of expiring worthless, allowing investors to retain shares and collect the premium, which would equate to a 6.70% return boost, or 26.28% annualized.
