Eastman Chemical Co’s New Options Present Potential Strategies for Investors

Fresh Options Trading Insights for June 2025

Investors in Eastman Chemical Co (Symbol: EMN) are now able to explore new options that started trading today, with an expiration date set for June 2025. The time value—a key factor that impacts option pricing—plays a significant role here, given that there are 246 days until expiration. This extended period provides a compelling chance for sellers of puts or calls to earn a higher premium compared to options with shorter time frames. Stock Options Channel has analyzed the EMN options chain and identified notable put and call contracts that investors may find intriguing.

Insights on the $105.00 Put Contract

The put contract with a strike price of $105.00 currently carries a bid of $4.50. Should an investor choose to sell-to-open this put, they would commit to buying the stock for $105.00 while also collecting the premium, thus reducing the effective purchase price to $100.50 (excluding broker fees). For those looking to buy EMN shares, this could be a more appealing option than paying the current market price of $108.44 per share.

Given that the $105.00 strike is approximately 3% below the current trading price, there exists a possibility that the put could expire worthless. Analytical data indicates a 63% likelihood of this outcome. Stock Options Channel plans to monitor these odds and provide updates over time on their dedicated contract detail page. If the put contract expires without being exercised, the premium would yield a return of 4.29%, or an annualized rate of 6.36%, which we refer to as the YieldBoost.

Below is visual data showing the past twelve months of trading for Eastman Chemical Co, highlighting the position of the $105.00 strike price:

Examining the $110.00 Call Contract

On the calls side, we see a contract with a $110.00 strike price currently valued at $6.80. An investor could buy EMN stock at the current price of $108.44 and subsequently sell-to-open this call option as a “covered call.” In this scenario, the investor commits to selling their shares for $110.00, which, combined with the obtained premium, could yield a total return of 7.71%, assuming the stock is called away at the June 2025 expiration (before broker fees). It’s essential to consider potential upside, as substantial price increases in EMN shares could mean lost opportunities. Thus, examining the company’s past trading trends and understanding its fundamentals is crucial.

Here is the chart marking the trading history of EMN over the last twelve months, with the $110.00 strike indicated:

The $110.00 strike price represents a slight premium of about 1% over the current stock price, suggesting a chance the covered call might expire worthless. Current metrics suggest a 46% likelihood of this happening. Stock Options Channel will continually track this information on the contract detail page. Should the call expire worthless, the collected premium would provide a 6.27% additional return to the investor, or 9.30% when annualized, also categorized as a YieldBoost.

It’s worth noting that the put contract carries an implied volatility of 25%, while the call has an implied volatility of 23%. In real terms, the actual trailing twelve-month volatility—based on the last 251 days of closing prices, including today’s stock price of $108.44—is at 22%. Investors seeking more options ideas should explore further at 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.