Investors in Delta Air Lines Inc (NYSE: DAL) gained access to new options expiring in June 2027, offering potential opportunities for higher premiums due to the 374 days until expiration. A put contract at the $77.50 strike price currently bids at $9.55, allowing sellers to effectively buy shares at a cost basis of $67.95, which is a 14% discount from the current trading price of $79.13. The odds of this put contract expiring worthless are estimated at 63%, presenting a potential yield of 12.32% on the cash commitment.
Additionally, a call contract at the $85.00 strike price is available with a current bid of $10.70. If an investor sells this covered call after purchasing shares at the current price, it could yield a total return of 20.94% if the stock is called away by June 2027, with a 46% chance of it expiring worthless, thus allowing the retention of both shares and premiums collected. The implied volatilities for the put and call contracts are 43% and 44%, respectively.
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