New Investment Opportunities Unveiled for Winnebago Industries’ Stock Options
Options Set to Expire in September 2025 Present Strategic Choices for Investors
Today, investors in Winnebago Industries, Inc. (Symbol: WGO) gained access to new options that will expire in September 2025. Options pricing heavily depends on the time value, and with 263 days until expiration, these newly available contracts offer the potential for sellers of puts or calls to earn higher premiums compared to contracts with shorter expirations. Stock Options Channel has analyzed the WGO options chain and highlighted one put and one call contract that may be particularly appealing.
The put contract at a $45.00 strike price currently has a bid of $3.40. An investor selling to open this put would agree to buy the stock at $45.00, while also collecting a premium, effectively lowering their cost basis to $41.60 per share (excluding broker commissions). For someone already interested in acquiring shares of WGO, this option presents a compelling alternative to the current market price of $45.67 per share.
As the $45.00 strike price is roughly 1% below the stock’s current price (making it out-of-the-money by that percentage), there exists a chance that this put contract could expire worthless. Current analytics suggest a 59% probability of this outcome. Stock Options Channel will monitor these odds over time, providing updates on our website. If the contract does expire worthless, the premium would yield a 7.56% return on the cash invested, equating to an annualized rate of 10.49%—a figure we refer to as the YieldBoost.
Following is a chart illustrating the last twelve months of trading for Winnebago Industries, Inc., with the $45.00 strike marked in green:
Shifting to the calls side, the contract at a $47.50 strike price boasts a current bid of $3.50. If an investor buys shares of WGO stock at $45.67 and simultaneously sells to open this call contract as a covered call, they are agreeing to sell the shares at $47.50. By also collecting the premium, the investor could potentially see a total return of 11.67% if the stock is called away at the September 2025 expiration (before broker commissions). However, if WGO shares significantly increase in value, some upside may be forfeited, which underscores the importance of reviewing past trading history and company fundamentals. Below is a chart showing WGO’s last twelve months of trading activity, with the $47.50 strike highlighted in red:
The $47.50 strike price is approximately 4% above the stock’s current price (indicating it is out-of-the-money by that amount), suggesting that the covered call might also expire worthless. If this occurs, the investor would retain both their shares and the premium received. Current data indicates a 47% chance of this happening. Stock Options Channel will keep track of these probabilities, documenting any changes on our website. If the covered call ends up expiring worthless, the premium would deliver a 7.66% extra return to the investor, translating to an annualized rate of 10.64%, also classified as a YieldBoost.
Both the put and call contracts feature an implied volatility of about 39%. In contrast, we calculate the actual trailing twelve month volatility—based on the last 250 trading day closing values and the current price of $45.67—to be around 35%. For additional ideas regarding put and call options contracts, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
