Exploring Unique AI-Driven Put and Call Options for May 30th

Updated On: April 10, 2025 10:59 pm

New C3.ai Options Present Investor Opportunities with Discounted Contracts

Investors in C3.ai Inc (Symbol: AI) can now explore new options for the May 30 expiration date. At Stock Options Channel, our YieldBoost formula has analyzed the AI options chain and highlighted two contracts of particular interest: one put and one call.

Put Contract Analysis

The put contract at the $20.00 strike price currently has a bid of 17 cents. If an investor sells-to-open this put contract, they are agreeing to buy the stock at $20.00. However, by collecting the premium, the effective cost basis of the shares drops to $19.83 (excluding broker commissions). For those looking to buy shares of AI, this could be an appealing alternative given the stock is trading at $20.34 today.

Considering that the $20.00 strike price is approximately 2% below the current trading price (indicating it is out-of-the-money by that percentage), there is a 58% chance that this put contract may expire worthless, according to current analytical data, including greeks and implied greeks. Over time, Stock Options Channel will monitor these odds and present a chart on our website’s contract detail page. Should the contract expire worthless, the premium represents a 0.85% return on the cash commitment, equivalent to an annualized return of 6.21%—a figure we refer to as YieldBoost.

Call Contract Analysis

On the calls side, the contract at the $22.50 strike price is currently bid at 28 cents. An investor buying AI shares at the current price of $20.34 and then selling-to-open this call contract as a “covered call” commits to selling the stock at $22.50. With the addition of the premium collected, this strategy could yield a total return of 12.00% if the stock is called away by the May 30 expiration (before broker commissions). However, substantial upside could remain untapped if AI shares increase significantly, making it essential to analyze C3.ai’s historical trading performance and business fundamentals.

The following chart displays AI’s trailing twelve months of trading, with the $22.50 strike highlighted in red:

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The $22.50 strike is about 11% above the current trading price of the stock, indicating it is out-of-the-money by that amount. Consequently, there’s also a chance the covered call may expire worthless, allowing the investor to retain both their shares and the received premium. Presently, analytical data suggests a 56% probability of this occurring. Stock Options Channel will continually track these probabilities on our website, including a historical overview of the option contract. If the covered call expires worthless, the premium translates to a 1.38% bonus return for the investor, or 10.05% annualized—another application of our YieldBoost concept.

The implied volatility for the put contract stands at 77%, while the call contract has an implied volatility of 76%. When assessing the past year, we calculate the actual trailing twelve-month volatility—based on the last 251 trading days and today’s price of $20.34—to be 62%. For additional options contract insights, visit StockOptionsChannel.com.

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