American Airlines Group Inc (AAL) introduced new options expiring in June 2028, allowing investors to explore longer-term strategies. Notably, a put option at the $12.00 strike price has a current bid of $2.03, offering a possible cost basis of $9.97 per share for investors willing to buy at this lower price. This strike price represents an 11% discount to AAL’s current trading price of $13.47, with a 73% chance of expiring worthless, potentially providing a 16.92% return on the cash commitment.
On the call side, a call option at the $17.00 strike price has a bid of $2.44. If an investor sells this call while holding AAL shares, they are committing to sell at $17.00, translating to a total return of 44.32% if the stock price rises to that level by June 2028. This call option is approximately 26% above the current stock price, with a 46% chance of expiring worthless, providing an 18.11% additional return if it does.
The implied volatility for the put option is 49%, while the call option shows an implied volatility of 52%. The actual trailing twelve-month volatility is measured at 47% based on the last 251 trading days.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
