Realty Income Corp (NYSE: O) began trading new options today for September 2027 expiration, with notable contracts that may appeal to investors. The put contract at a $60.00 strike price has a current bid of $1.95, effectively lowering the cost basis for investors to $58.05 per share if they sell-to-open. The current share price is $63.09, meaning the put contract is approximately 5% out-of-the-money, with a 63% chance of expiring worthless. This could yield a 3.25% return on cash commitment, or 3.01% annualized.
Additionally, a call contract at the $65.00 strike price is trading at $1.85. If an investor buys shares at the present price and sells this covered call, they could see a total return of 5.96% if the stock is called away by the September 2027 expiration date. The current odds of this call contract expiring worthless stand at 58%, potentially providing a 2.93% boost in return, or 2.72% annualized.
The implied volatility for both the put and call contracts is approximately 19%, while the trailing twelve-month volatility of Realty Income is calculated at 16% as of today’s price.
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.
