New CHRD Options Trading Reveals Investment Opportunities
Chord Energy Corp (Symbol: CHRD) has begun trading new options today, with an expiration date of August 15. With 73 days left until expiration, these contracts may allow sellers of puts or calls to secure higher premiums compared to shorter-term options.
The notable put contract at the $90.00 strike price has a current bid of $4.40. If an investor sells this put, they agree to buy the stock at $90.00 while collecting the premium. This arrangement effectively lowers the cost basis to $85.60, presenting an appealing alternative to purchasing shares at the current price of $92.66.
This $90.00 strike is approximately 3% below the current trading price, making it out-of-the-money by that same percentage. Current analytical data suggests a 59% chance that the put contract could expire worthless. We will monitor these odds over time and publish updates on our contract detail page. Should the put expire worthless, the premium represents a 4.89% return on the cash commitment, equating to 24.44% annualized, a figure we refer to as the YieldBoost.
Below is a chart displaying the trailing twelve-month trading history for Chord Energy Corp, marking the location of the $90.00 strike price:
On the call side, the $95.00 strike price contract has a current bid of $5.00. An investor buying shares of CHRD at $92.66 can sell this call as a covered call, agreeing to sell at $95.00. Including the premium, the total return would be 7.92% if the stock is called away at expiration, excluding any dividends.
This $95.00 strike price is approximately 3% above the current trading price. There’s a chance the covered call could expire worthless, allowing the investor to keep their shares and the premium collected. The current data suggests a 51% probability of this occurring. Should it expire worthless, the premium would provide a 5.40% additional return, or 26.98% annualized, also termed YieldBoost.
The implied volatility for the put option is 42%, while the call option shows an implied volatility of 46%. Meanwhile, the actual trailing twelve-month volatility, based on the last 250 trading days and today’s price of $92.66, is calculated at 39%. For additional put and call options ideas, 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.
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