American Airlines Group Inc (AAL) has introduced new options expiring in March 2028, including a notable put contract at an $8.00 strike price currently bid at 58 cents. This represents a 41% discount from the current trading price of $13.48 per share, offering potential for investors to lower their effective cost basis to $7.42 if exercised. The likelihood of this put expiring worthless is estimated at 89%, potentially yielding a return of 7.25% on the initial cash commitment.
On the call side, a contract at the $20.00 strike is bid at 70 cents. If shares are sold at this strike price upon expiration, investors could see a total return of 53.56%. Currently, the odds of the call expiring worthless stand at 50%, which could result in a 5.19% additional return for investors choosing to hold their shares. Implied volatilities for the put and call contracts are 54% and 67%, respectively.
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