Investors in Capital One Financial Corp (COF) gained access to new options expiring in January 2029, presenting potential opportunities for put and call sellers. Specifically, a put contract at the $195.00 strike has a bid of $26.50, allowing investors to lower their cost basis to $168.50 if exercised. The strike price represents a roughly 6% discount from the current trading price of $207.81, with a 70% chance of expiring worthless.
On the call side, a contract at the $250.00 strike price has a current bid of $30.50. Investors who purchase COF shares at $207.81 and sell this call would commit to selling the stock at $250.00, yielding a potential total return of 34.98% by January 2029 if exercised. This strike price reflects a 20% premium over the current share price, with a 51% likelihood of expiring worthless.
Implied volatility for the put contract is 34%, while for the call it is 35%. Historical volatility stands at 33%, based on the last 250 trading days.
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