Investors in Energy Transfer LP (Ticker: ET) can now purchase new options expiring on August 21st, 2023. The highlight is a call contract at a $20.00 strike price, currently bid at $0.60. If an investor buys shares at the current price of $19.60 and sells this call as a covered call, they could achieve a total return of 5.10% if the option is exercised.
The $20.00 strike represents a 2% premium over the current trading price. There’s a 51% chance the call may expire worthless, allowing the investor to keep both the shares and the premium, potentially resulting in a 3.06% additional return, or an annualized 10.64%. The implied volatility for this contract is 47%, compared to the trailing twelve-month volatility of 17%.
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