New OPTION Opportunities Emerge for ONEOK Inc. Investors

Exploring the February 2025 Option Contracts

Investors in ONEOK Inc (Symbol: OKE) are presented with new options today that expire in February 2025. These contracts provide an opportunity for put or call sellers to secure higher premiums due to the 80 days remaining until expiration. Stock Options Channel has identified one intriguing put and one call contract in the February 2025 options chain.

The put contract at the $110.00 strike price currently has a bid of $2.60. If an investor opts to sell this put, they commit to buy the stock at $110.00 but will collect the premium, reducing the effective price to $107.40 (excluding broker commissions). For those considering investing in OKE shares, this could be an appealing alternative to purchasing at today’s price of $110.72/share.

This $110.00 strike price is about 1% below the current trading price, placing it out-of-the-money by that percentage. Thus, there’s a 55% chance the put option could expire worthless. Stock Options Channel will monitor these odds over time and share updates through charts on our website. If the option does expire worthless, the premium received would yield a return of 2.36% on the cash commitment, or 10.78% annualized — a concept we refer to as YieldBoost.

Below is a chart showcasing the trailing twelve-month trading history for ONEOK Inc, with the $110.00 strike highlighted in green:

Evaluating Call Options: A Covered Call Strategy

Turning to call options, the $115.00 strike price currently has a bid of $1.70. Investors purchasing shares of OKE at the current price of $110.72/share and selling this call option would commit to sell their stock at $115.00. Including the premium collected, this strategy would lead to a total return of 5.40% if the stock is called away at the February 2025 expiration (excluding dividends and broker commissions). However, if OKE’s share price significantly increases, the investor may miss out on potential upside. Therefore, analyzing the trailing twelve-month trading history is crucial for making informed decisions. Below is a chart illustrating OKE’s trading history, with the $115.00 strike highlighted in red:

The $115.00 strike represents a 4% premium over the current trading price, meaning it is out-of-the-money by that percentage. There’s a 60% chance this covered call could also expire worthless, allowing the investor to retain both their shares and the premium received. Stock Options Channel will keep a watch on these odds and track their changes over time, providing insights through our website. Should this call option expire worthless, the collected premium would contribute an additional 1.54% return, or 7.01% annualized, again identified as YieldBoost.

The implied volatility for both the put and call contracts stands at around 24%. In contrast, the actual trailing twelve-month volatility, which considers the last 251 trading days alongside today’s price of $110.72, is calculated at 21%. For more options contract ideas, 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.