Confluent Inc Options Trading Offers New Investment Opportunities
Investors in Confluent Inc (Symbol: CFLT) have seen fresh options begin trading today, specifically for a March 2026 expiration. One crucial factor influencing an option’s price is its time value. With 340 days remaining until expiration, these newly listed contracts offer a potential advantage for sellers of puts or calls, who may secure higher premiums compared to contracts with shorter expirations. The YieldBoost formula at Stock Options Channel has analyzed the CFLT options chain and identified a noteworthy put and call contract.
Put Option Insights
The identified put contract, priced at a $20.00 strike, currently bids at $1.80. If an investor opts to sell-to-open this put contract, they agree to buy the stock at $20.00 while also collecting the premium. This arrangement effectively reduces their cost basis to $18.20 per share (excluding broker commissions). For those interested in acquiring shares of CFLT, this could be a more appealing option compared to the current market price of $21.89 per share.
Since the $20.00 strike price represents a roughly 9% discount to the current trading price, it is deemed out-of-the-money by that margin. Analytical data indicates that there is a 70% likelihood this put contract may expire worthless. The Stock Options Channel will monitor these odds over time and regularly publish updates on our website under the contract detail page. If the contract does indeed expire worthless, the premium collected would yield a 9.00% return on the cash commitment, equating to a 9.66% annualized return—this is referred to as YieldBoost.
Below is a chart depicting the trailing twelve-month trading history for Confluent Inc, illustrating the position of the $20.00 strike in green:
Call Option Analysis
Shifting focus to the calls, the call contract with a $25.00 strike price has a current bid of $2.50. Should an investor purchase CFLT shares at the current price of $21.89 per share and then sell-to-open this call contract as a “covered call,” they would agree to sell the shares at $25.00. When factoring in the premium, this strategy yields a total return of approximately 25.63% if the shares are called away by the March 2026 expiration (excluding dividends and broker commissions). However, a significant upside may remain if CFLT shares increase dramatically, underscoring the importance of analyzing the past trading history and business fundamentals of the company.
Presented below is a chart showcasing CFLT’s trailing twelve-month trading history, with the $25.00 strike highlighted in red:
The $25.00 strike price signifies an approximately 14% premium to the current stock price, thereby classifying it as out-of-the-money by that percentage. Consequently, this covered call contract also faces the risk of expiring worthless, allowing the investor to keep both their shares and the collected premium. Current analytical data shows a 44% probability of this outcome occurring. The Stock Options Channel will keep track of these odds and publish related data, including trading history charts for the contract. Should the covered call contract expire worthless, the premium would represent an 11.42% gain for the investor, approximately 12.26% annualized, also referred to as YieldBoost.
In terms of volatility, the implied volatility for the put contract is at 67%, while the call contract’s implied volatility stands at 64%. We also calculate that the trailing twelve-month actual volatility, based on the last 250 trading days and the current price of $21.89, is 63%. For additional put and call options that merit consideration, please visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
also see:
- BRCN shares outstanding history
- Institutional Holders of BFEB
- VGFC YTD Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
