Investors in Chevron Corporation (CVX) now have access to new options expiring on November 20, 2023, which could enhance potential premiums for sellers of puts and calls due to the 101 days until expiration. Notably, a put contract at the $150 strike price is currently bid at $0.50, representing a 23% discount from the current stock price of $195.55. Should this contract expire worthless, it would yield a 0.33% return on the cash commitment — equating to an annualized return of 1.20%.
On the call side, a contract at the $200 strike price is bid at $8.10. If an investor buys shares at $195.55 and sells this call, they stand to gain a total return of 6.42% if the stock is called away at expiration. The odds of this call contract expiring worthless are currently estimated at 54%. The implied volatility for the put contract is 39%, while for the call contract, it’s 26%.
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