Canadian National Railway Co (CNI) has introduced new options expiring in March 2027, creating potential investment opportunities. These contracts have 235 days until expiration, allowing sellers of puts and calls to achieve higher premiums compared to shorter expiration options.
Notably, a put contract at the $125.00 strike price currently bids at $4.70, offering an effective purchase price of $120.30 if executed. This represents a 3% discount from the current stock price of $128.44 with a 64% chance of expiration worthless, potentially yielding a 3.76% return on cash commitment (or 5.84% annualized). On the calls side, a $135.00 strike call contract bids at $6.10, which, if used as a covered call, could yield a 9.86% return if the stock is called away, with a 53% chance of expiring worthless.
The implied volatility for both contracts is approximately 24%, while actual trailing twelve-month volatility sits at 22%.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
