Investors in TechnipFMC plc (Symbol: FTI) can now trade options expiring in November 2027, providing a strategic opportunity due to the 480 days until expiration. Notably, a $70.00 put contract is currently bid at $6.80, allowing sellers to potentially purchase shares at a cost basis of $63.20, which is approximately 6% below the current market price of $74.77. The likelihood of this put contract expiring worthless is estimated at 69%, offering a projected return of 9.71% on cash commitment or 7.39% annualized.
On the calls side, a $90.00 call contract is trading at $7.50. If shares are purchased at $74.77 and the call is then sold as a covered call, total returns could reach 30.40% if the stock is called away at expiration. This strike price is about 20% above the current stock price, with a 54% chance of the contract expiring worthless, allowing investors to retain both their shares and the premium, translating to a potential return boost of 10.03% or 7.63% annualized.
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