Ford Motor Co. (NYSE: F) launched new options trading today for December 2028 expiration. With 945 days until expiration, investors can utilize the time value aspect to potentially earn higher premiums on puts or calls compared to contracts that expire sooner.
One notable option is the $12.00 put contract, currently bidding at $2.06. If sold, the investor would effectively acquire shares at a cost basis of $9.94, giving an 11% discount from today’s price of $13.52. The probability of this contract expiring worthless is estimated at 74%, which would yield a return of 17.17% on the cash commitment, or 6.63% annualized.
On the call side, a $15.00 strike price contract is currently at $2.20. If an investor purchases shares at $13.52 and sells this call, they could realize a total return of 27.22% if exercised. The odds of this contract expiring worthless are currently at 50%, potentially providing a 16.27% extra return, or 6.28% annualized.
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