New Options for Macy’s Inc Offer Strategic Investment Opportunities

Investors in Macy’s Inc (Symbol: M) gained access to new options today, set to expire in December 2026. With 576 days until expiration, these contracts may present a unique opportunity for sellers of puts or calls, enabling them to command higher premiums compared to shorter-term contracts.

Put Contract Analysis

A notable finding from the December 2026 options chain is the put contract with a $10.00 strike price, currently bidding at 80 cents. Selling this put contract commits the investor to buy shares of Macy’s at $10.00 while collecting the premium, resulting in an effective cost basis of $9.20 per share (before broker commissions). For those already interested in purchasing shares, this option is more attractive than buying at the current price of $11.83 per share.

This $10.00 strike price reflects a roughly 15% discount to the current trading price, meaning it is out-of-the-money by that percentage. Current analytical data suggest a 71% probability that this put contract could expire worthless. The potential outcome, if this occurs, would yield an 8.00% return on the cash commitment, equating to an annualized return of 5.07%—labeled as YieldBoost.

Trading History Chart

Below is a chart displaying Macy’s Inc’s trailing twelve months of trading history, highlighting the position of the $10.00 strike price:

Call Contract Opportunities

On the calls side, the contract available at the $15.00 strike price is bidding at 62 cents. An investor purchasing shares of Macy’s at $11.83 per share and selling a covered call at this strike price would agree to sell the stock at $15.00. Including the premium collected, the total return (excluding dividends) would reach 32.04% if the stock is called away at the December 2026 expiration. However, if Macy’s shares appreciate significantly, potential upside could be limited.

This $15.00 strike price represents about a 27% premium to the current trading price, thus categorizing it as out-of-the-money by that percentage. There’s also a 53% probability, based on current analytical data, that the covered call could expire worthless, allowing the investor to retain both shares and premium. If this happens, the premium would provide a 5.24% additional return to the investor, or 3.32% annualized, which is also referred to as YieldBoost.

Implied Volatility Comparisons

The implied volatility for the put contract is currently at 54%, while the call contract holds at 52%. In contrast, the actual trailing twelve-month volatility, calculated from the last 250 trading days against today’s price of $11.83, stands at 49%.

For more insights on other put and call options worth exploring, visit StockOptionsChannel.com.

The views and opinions expressed herein represent those of the author and do not necessarily reflect those of Nasdaq, Inc.