New Options Contracts Available for Delta Air Lines Investors
Investors in Delta Air Lines Inc (Symbol: DAL) gained access to new options today, set to expire on April 25th. At Stock Options Channel, we’ve analyzed the DAL options chain to highlight one put and one call contract of particular interest.
Put Contract Insights
The put contract with a $56.00 strike price carries a current bid of $1.70. If an investor chooses to sell-to-open this put contract, they would commit to buying the Stock at $56.00. Meanwhile, they also receive the premium, effectively lowering their cost basis to $54.30 per share (before broker commissions). For those already interested in acquiring DAL shares, this presents an appealing alternative compared to the current market price of $56.61/share.
This $56.00 strike price is approximately 1% below the stock’s current trading value, meaning it is slightly out-of-the-money. Currently, analytical data indicate there is a 53% chance the put contract could expire worthless. At Stock Options Channel, we will monitor these odds and provide updates on our website’s contract detail page. If the contract does expire without value, the premium extracted would yield a 3.04% return on the cash commitment, equating to an annualized rate of 22.18%—a concept we refer to as YieldBoost.
Visualizing the Trading History
Below is a chart outlining Delta Air Lines Inc’s trading activity over the past twelve months, indicating where the $56.00 strike is positioned within that context:
Call Contract Analysis
On the call side, the contract priced at a $57.00 strike is currently bidding at $1.89. If an investor buys shares of DAL at the presently listed price of $56.61/share and sells-to-open this call contract as a covered call, they commit to selling the Stock at $57.00. Collecting the premium will enhance their total return (excluding any dividends) to 4.03% if the Stock is called at expiration on April 25th (before broker commissions).
However, if DAL shares appreciate significantly, the investor might miss out on greater gains. Thus, it’s crucial to consider both the trailing twelve-month trading history and the underlying fundamentals. The corresponding chart for DAL’s trading history, with the $57.00 strike price highlighted, is shown below:
The $57.00 strike price sits about 1% above the current trading price, placing it slightly out-of-the-money as well. There is a 50% chance that the covered call contract could expire worthless, enabling the investor to retain both their shares and the premium earned. We will also track these metrics over time on our website to provide ongoing updates. If this call contract expires worthless, the premium will yield a 3.34% additional return for the investor, or an annualized 24.39%—again referred to as YieldBoost.
Volatility Considerations
The implied volatility for the put contract is currently at 44%, while the call contract shows an implied volatility of 50%. Our analysis also reveals that the actual trailing twelve-month volatility, based on the last 250 trading days and the current price of $56.61, is 34%. For more options contract opportunities worth exploring, visit StockOptionsChannel.com.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
