New MP Materials Options Trading Suggests Strategic Opportunities for Investors

Investors in MP Materials Corp (Symbol: MP) are witnessing fresh options trades for the May 2026 expiration date. With 395 days until expiration, the time value aspect of these new contracts may offer an opportunity for sellers of puts or calls to achieve higher premiums compared to those with shorter expirations. Our YieldBoost formula at Stock Options Channel highlights one put and one call contract that stand out among the new May 2026 options.

Put Contract Details

The put contract at the $27.00 strike price currently has a bid of $5.00. If an investor sells that put contract, they would agree to purchase shares at $27.00 but also collect the premium, effectively lowering their cost basis to $22.00 per share (before broker commissions). For investors looking to buy MP shares, this could be a more attractive option than purchasing at the current price of $27.37/share.

This $27.00 strike represents approximately a 1% discount to the current trading price, meaning it is slightly out-of-the-money. Current analytical data indicates a 67% chance the put contract could expire worthless. We will continuously monitor these odds, providing updated metrics on our website’s contract detail page. If the contract does expire worthless, the premium could yield an 18.52% return on the cash commitment, or 17.11% annualized—an outcome we refer to as the YieldBoost.

MP Materials Trading History

Below is a chart displaying the trailing twelve-month trading history for MP Materials Corp, with the $27.00 strike highlighted in green:

Call Contract Details

Transitioning to the call side, the call contract priced at $35.00 currently has a bid of $4.70. If investors purchase MP shares at $27.37 and then sell the call contract as a “covered call”, they agree to sell the stock at $35.00. Including the collected premium, this could yield a total return of 45.05% if the stock is called away by May 2026 (before broker commissions). However, this strategy may limit potential upside if MP shares significantly increase, emphasizing the importance of reviewing MP’s trading history and business fundamentals.

Here’s the chart indicating MP’s trailing twelve-month trading history, with the $35.00 strike highlighted in red:

The $35.00 strike represents an approximate 28% premium over the current trading price, making it out-of-the-money by that percentage. Therefore, it holds the potential to expire worthless, allowing investors to keep both their shares and the premium collected. Analytical data suggests a 48% chance of this occurring. We will also track these odds, reflecting changes over time on our website along with the trading history of the options contract. Should the covered call expire worthless, it would represent an additional return of 17.17% or 15.87% annualized, both under our YieldBoost classification.

The implied volatility for the put contract stands at 70%, while the call contract shows an implied volatility of 64%. In contrast, our calculations reveal that the actual trailing twelve-month volatility, based on the last 251 trading days and the current price of $27.37, is 63%. For more ideas on put and call options worth exploring, 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.