NextEra Energy Inc (NEE) has initiated trading for new options contracts set to expire on November 20, 2023. The newly available put option at the $80.00 strike price carries a bid of $1.61, enabling investors to effectively purchase shares at a cost basis of $78.39, assuming they sell the put. This represents a 3% discount from the current share price of $82.79. Analytical data indicates a 64% probability that this put may expire worthless, offering a potential return of 2.01% on investment, or 9.29% annualized.
Additionally, a call option at the $87.50 strike price is currently bid at $1.48. If an investor buys shares at $82.79 and sells this call as a covered option, they might realize a total return of 7.48% if the stock is called away by the expiration date. There is a 68% chance this call will expire worthless, allowing the investor to retain both shares and premium, resulting in an additional return of 1.79%, or 8.26% annualized.
Both the put and call options exhibit an implied volatility of around 24%, while the trailing twelve-month volatility stands at 21%.
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