Investors in Ford Motor Co. (Symbol: F) have new options trading available for expiration on June 13. At Stock Options Channel, our YieldBoost formula has examined the options chain and identified notable contracts worth considering.

Attractive Put Options

The put contract at the $9.00 strike price currently has a bid of 19 cents. By selling-to-open this put contract, an investor commits to purchase the stock at $9.00 while also collecting the premium. This setup results in a cost basis of $8.81 per share (before broker commissions). For those looking to invest in F, this approach offers a compelling alternative compared to buying shares outright at $10.22 each.

Given that the $9.00 strike price represents approximately a 12% discount to the current stock price, there is a possibility that this put contract could expire worthless. Current analytical data indicates a 78% probability for that outcome. Stock Options Channel will monitor these odds over time, providing updates on our website. If the contract indeed expires worthless, the premium would yield a 2.11% return on the cash commitment, equivalent to an annualized return of 17.92%—referred to as the YieldBoost.

12-Month Trading History Chart

Below is a chart showing the trailing twelve-month trading history for Ford Motor Co., with the $9.00 strike highlighted in green:

Covered Call Options

On the calls side, the $11.00 strike contract has a current bid of 18 cents. An investor purchasing shares of F at $10.22 and then selling-to-open this call contract as a “covered call” commits to sell the stock at $11.00. With the premium collected, a total return of 9.39% is possible, assuming the stock is called away at the June 13 expiration (prior to broker commissions). However, significant upside potential could be lost if F shares experience substantial gains, making it essential to consider both trading history and business fundamentals.

Below is a chart illustrating F’s trailing twelve-month trading history, with the $11.00 strike marked in red:

With the $11.00 strike representing approximately an 8% premium to the current trading price, there is a risk that this covered call could also expire worthless. Should that occur, the investor retains both their shares and the collected premium. Current data shows a 72% likelihood of this happening. Again, Stock Options Channel will track these metrics and provide updates. If the contract expires worthless, it would yield an additional return of 1.76% or an annualized 14.95%, also referenced as the YieldBoost.

Implied Volatility Data

The implied volatility for the put contract is 47%, while the call contract sits at 40%. In contrast, the actual trailing twelve-month volatility, calculated from the last 250 trading days and today’s price of $10.22, is 39%. For additional options contract ideas, visit StockOptionsChannel.com.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.