New Options Available for EOS Energy Enterprises: A Look at Potential Strategies

Investors in EOS Energy Enterprises Inc (Symbol: EOSE) can now explore new options set to expire on April 4th. At Stock Options Channel, we have analyzed these contracts and found one put and one call that stand out.

Attractive Put Option at $4.50 Strike Price

The put contract priced at $4.50 is currently bid at 40 cents. If an investor chooses to sell-to-open this put contract, they would agree to buy shares at $4.50 while being paid the premium. This brings the effective cost to $4.10 per share, excluding broker commissions. For those planning to buy EOSE shares, this alternative could be appealing compared to the current market price of $5.04 per share.

With the $4.50 strike price representing about an 11% discount from the current trading price, there is a possibility that the put contract might expire worthless. Current analytics suggest a 71% chance of this outcome. Stock Options Channel will monitor these odds and update a chart on our website with the relevant data. If the contract expires worthless, the premium would yield an 8.89% return on the cash commitment, translating to a notable 66.27% annualized return, a concept we refer to as YieldBoost.

Below, we present a chart illustrating the trailing twelve-month trading history of EOS Energy Enterprises Inc, highlighting where the $4.50 strike is situated:

Covered Call Opportunity with $5.50 Strike Price

On the calls side, there’s a contract available at the $5.50 strike price, which has a current bid of 38 cents. If an investor decides to buy EOSE shares at the current price of $5.04 and sells this call as a “covered call,” they commit to selling the stock for $5.50. With the premium included, this leads to a total potential return of 16.67% at the April 4th expiration, prior to any broker commissions. However, it’s important to consider that if EOSE shares increase significantly, the investor could miss out on higher potential profits. Therefore, reviewing the trailing twelve-month trading history and fundamentals of EOS Energy is crucial.

Here is the chart displaying EOSE’s trading history, with the $5.50 strike marked:

The $5.50 strike price represents a roughly 9% premium to the stock’s current trading price. If the covered call contract expires worthless, the investor retains both the shares and the premium received. Current analytics suggest a 45% chance of this happening. Stock Options Channel will also track and publish a chart of these odds over time. Should the covered call expire worthless, the premium would yield a 7.54% additional return, or 56.21% annualized, again described as YieldBoost.

Implied volatility stands at 107% for the put contract and 137% for the call. Meanwhile, the actual trailing twelve-month volatility, calculated from the last 250 trading days along with today’s $5.04 price, is identified at 103%. For more options insights, visit StockOptionsChannel.com.

Top YieldBoost Calls of the S&P 500 »

Also see:

 – VEON Videos
 – SUM market cap history
 – STUD Videos

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.