Investors in American Express Co. (NYSE: AXP) gained access to new options contracts today with a March 2027 expiration. The new put contract at the $290.00 strike price has a current bid of $32.50, allowing sellers to potentially buy the stock at a net cost of $257.50 per share, compared to the current trading price of $292.61. There is a 62% chance that the put contract could expire worthless, with a potential return of 11.21% on cash commitment if it does.
On the call side, the $310.00 strike has a current bid of $34.70. Selling this contract as a covered call while owning the stock could yield a total return of 17.80% if exercised. This call is approximately 6% above the current trading price, with a 47% probability of expiring worthless, which would still provide a premium boost of 11.86%.
Both contracts exhibit implied volatility around 35%, while the actual trailing twelve-month volatility stands at 33%.
