Investors in British American Tobacco plc (BTI) have new options trading for February 2026, including a notable put contract at a $55.00 strike price with a current bid of $1.70. If executed, the effective cost basis for shares would be $53.30, presenting an alternative to buying shares at the current market price of $56.47. This put option has a 61% chance of expiring worthless, potentially yielding a 3.09% return on cash commitment, or 17.91% annualized.
Additionally, there is a call contract available with a $60.00 strike price, currently bid at 80 cents. Investors selling this covered call while holding shares would secure a potential return of 7.67% if the shares are called by expiration. This call option has a 73% chance of also expiring worthless, providing an additional premium yield of 1.42% or 8.21% annualized.
