New Options Available for Progressive Corp. (PGR) Investors

Today, investors interested in Progressive Corp. (Symbol: PGR) will find new options expiring on November 21. The time value is an important factor influencing the price option buyers are willing to pay. With 246 days remaining until expiration, these new contracts may offer sellers of puts or calls an opportunity to earn higher premiums compared to contracts set to expire sooner. At Stock Options Channel, our YieldBoost formula has identified a notable put and call contract within the PGR options chain.

Put Option Details at $275 Strike

The put contract with a strike price of $275.00 currently has a bid of $17.30. If an investor sells-to-open this put contract, they commit to purchasing shares at $275.00 while also collecting the premium. This action lowers the cost basis for the shares to $257.70 (before broker commissions). For those already looking to buy PGR shares, this option could be more appealing than the current price of $276.79 per share.

Notably, the $275.00 strike price represents roughly a 1% discount to the current trading price. Thus, there exists a possibility that the put contract might expire worthless, with current analytical data suggesting a 59% chance of this occurring. Stock Options Channel will monitor these odds over time, publishing a chart of changes on our website under the contract detail page. Should the put expire worthless, the premium would yield a 6.29% return on the cash commitment, or 9.33% annualized—referred to as the YieldBoost.

Analysis of Progressive Corp.’s Trading History

Below, you will find a chart detailing the trailing twelve-month trading history for Progressive Corp., highlighted in green to show the relative position of the $275.00 strike:

Call Option Insights at $290 Strike

Shifting to the call options, the contract at the $290.00 strike price has a bid of $19.40. If an investor purchases PGR shares at the current price of $276.79 per share and sells-to-open the $290.00 call contract as a “covered call,” they commit to selling the shares at $290.00. By collecting the premium, the total return (excluding dividends) would total approximately 11.78% if the stock is called away at expiration on November 21 (before broker commissions).

However, if PGR’s shares significantly increase in value, potential upside may be missed. Hence, analyzing PGR’s twelve-month trading history and reviewing business fundamentals is crucial. Below is the chart showing PGR’s trading history, with the $290.00 strike highlighted in red:

The $290.00 strike represents approximately a 5% premium over the current trading price, making it out-of-the-money by a similar percentage. There is also a possibility that the call contract could expire worthless, allowing the investor to retain both their shares and the premium. Current analytical data indicate that there is a 51% chance of this happening. Stock Options Channel will track these odds, providing charts of how they change over time, including the trading history of the option contract. Should the covered call expire worthless, the premium would increase the investor’s return by 7.01%, or 10.40% annualized, a figure we denote as YieldBoost.

The implied volatility for the put contract is at 25%, while the call contract shows an implied volatility of 28%. In comparison, we calculate the actual trailing twelve-month volatility, based on the past 250 trading days and today’s price of $276.79, to be 22%. For further worthwhile put and call options contract ideas, please visit StockOptionsChannel.com.

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also see:

• Trimble DMA
• LJPC shares outstanding history
• GIGM Split History

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