Investors in Realty Income Corp (Symbol: O) gained access to new options for January 2029, with significant implications for potential trading strategies. One notable put contract at a $37.50 strike price has a current bid of 90 cents, allowing an investor to effectively lower their cost basis to $36.60 if they were to sell-to-open this contract. This strike represents a 37% discount from the current share price of $59.47, and data suggests a 90% chance that the put will expire worthless, potentially yielding a 2.40% return on the cash commitment.
On the call options side, a contract at a $62.50 strike price is priced at $5.10. Investors who purchase shares at $59.47 and sell this covered call could see a total return of 13.67% if the stock is called away at expiration. This price reflects a 5% premium over the current stock price, with a 58% likelihood of the call also expiring worthless, providing an extra 8.58% potential return, or 3.65% annualized, if the contract does not get exercised.
The implied volatility for the put contracts stands at 27%, while it is 24% for the calls. The historical volatility of Realty Income over the past year is calculated at 16%.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
