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Investors in Bank of America Corp (NYSE: BAC) began trading new options for January 2026 today. A notable option includes a put contract at a $50.00 strike price, currently with a bid of 50 cents, providing a cost basis of $49.50 if sold-to-open. This represents a 7% discount to the current stock price of $53.95, with a 72% chance of expiring worthless, offering a potential 1.00% return on cash commitment or 7.30% annualized.
A corresponding call contract at a $57.00 strike price also has a bid of 50 cents. Investors selling this call as a covered call would realize a total return of 6.58% if the stock is called away at expiration. The likelihood of this call expiring worthless stands at 63%, with potential premium returns of 0.93% or 6.77% annualized.
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