New Options Alert: International Flavors & Fragrances Inc. Offers Exciting Choices
Investors in International Flavors & Fragrances Inc. (Symbol: IFF) have new options available with an August 2025 expiration date. With 239 days until these contracts mature, option sellers might benefit from higher premiums compared to short-term contracts. At Stock Options Channel, our YieldBoost formula has analyzed IFF’s options chain and found one put and one call contract of significant interest.
Put Option Insight: $85.00 Strike Price
The $85.00 strike price put contract currently has a bid of $4.90. An investor who sells-to-open this put is agreeing to buy the stock at $85.00 while collecting the premium. This effectively lowers the cost basis for the shares to $80.10, before any broker commissions. For someone looking to buy IFF shares, this presents a potentially attractive alternative to purchasing them at the current price of $86.00 per share.
Representing a 1% discount from the current trading price, the $85.00 strike is slightly out-of-the-money. Market analysis indicates a 58% chance that this put contract could expire worthless. As time progresses, Stock Options Channel will continue to track these odds and provide updates on our website. If the contract does expire without value, the premium earned would yield a 5.76% return on the cash commitment, annualizing to 8.81%—what we refer to as the YieldBoost.
Here is a chart reflecting the past twelve months of trading for International Flavors & Fragrances Inc., indicating the position of the $85.00 strike price:
Call Option Perspective: $87.50 Strike Price
On the calls side, there is a call contract available at the $87.50 strike price with a bid of $5.60. If an investor purchases IFF shares at the current price of $86.00 and sells-to-open this call as a covered call, they commit to selling the stock at $87.50. By collecting the premium, the total return—excluding any dividends—would amount to 8.26% if the stock is called away by the August 2025 expiration (before broker commissions).
It is essential to consider the potential gains if IFF shares rise significantly, making it vital to review the trailing twelve-month trading history and conduct a fundamental analysis. Below is a chart outlining IFF’s recent trading history, with the $87.50 strike highlighted:
The $87.50 strike represents an approximate 2% premium over the current stock price. This means there is a chance the covered call contract could also expire worthless, allowing investors to keep both the shares and the premium collected. Current analytical data shows a 47% probability of this scenario. Stock Options Channel will monitor these odds over time and provide updates on our website. Should the covered call expire without value, the premium would yield a 6.51% additional return or 9.95% annualized, presenting another YieldBoost.
Both the put and call contracts have an implied volatility of around 29%. Our analysis, based on the last 251 trading days and the current stock price of $86.00, shows a trailing twelve-month volatility of 26%. For more ideas on put and call options contracts, feel free to explore StockOptionsChannel.com.
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The views and opinions expressed herein are the author’s and do not necessarily reflect those of Nasdaq, Inc.
