New Trading Options Available for Stifel Financial Investors
Investors in Stifel Financial Corporation (Symbol: SF) have new opportunities with options that began trading today, set to expire in February 2025. With 115 days remaining until expiration, the newly available contracts present a potential opportunity for sellers of puts or calls to earn a higher premium compared to options with shorter expiration dates.
Our YieldBoost formula at Stock Options Channel has identified a notable put and call contract within the February 2025 options chain. The put contract with an $80.00 strike price currently bids at 10 cents. If an investor chooses to sell this put contract, they would agree to purchase the stock at $80.00, collecting the premium. This brings the effective cost basis of the shares to $79.90 (excluding broker commissions), offering an attractive alternative to the current $105.26 share price.
The $80.00 strike price represents a nearly 24% discount to the current trading price, positioning it out-of-the-money by that percentage. Current analytical data suggests an 86% chance that this put contract could expire worthless. Stock Options Channel will continuously track these odds and publish updates on our website. If the contract does expire worthless, the premium would provide a return of 0.12% on the cash commitment, equating to an annualized return of 0.40%, which we call the YieldBoost.
Below is a chart illustrating the trailing twelve-month trading history of Stifel Financial, with the $80.00 strike indicated in green:
Shifting focus to call options, the call contract available at the $110.00 strike price has a current bid of $1.50. An investor purchasing SF stock at the current price of $105.26 per share could sell this call contract as a covered call. Committing to sell the stock at $110.00 enables a total return of 5.93% if the stock is called away at February 2025 expiration (excluding dividends and broker commissions). However, if SF shares significantly increase, it could limit potential upside gain, making it essential to review Stifel’s past trading history and business fundamentals.
The following chart showcases SF’s trailing twelve-month trading history, highlighting the $110.00 strike in red:
Since the $110.00 strike price signifies a 4% premium above the current trading level, there exists a chance for the covered call contract to expire worthless. If this occurs, the investor retains both their stock shares and premium collected. Current analytical data indicates a 58% probability of this happening. Stock Options Channel will also monitor these odds and offer detailed insights on our website. In the event the covered call expires worthless, the premium represents a 1.43% additional return for the investor or an annualized return of 4.52%, referred to as YieldBoost.
The implied volatility for the put contract stands at 54%, while the call contract’s implied volatility is at 24%. Meanwhile, we calculate the actual trailing twelve-month volatility, based on the last 251 trading days and today’s price of $105.26, to be 22%. For more option ideas, please 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.
