Investors in Xcel Energy Inc (Symbol: XEL) can now access new options for December 2027, offering potential opportunities due to a lengthy expiration period of 569 days. Notably, a put contract at the $80.00 strike price has a bid of $6.40, allowing investors to effectively acquire shares at a cost basis of $73.60, about 8% lower than the current trading price of $80.69. There’s a 61% probability that this contract could expire worthless.
On the call side, a contract at the $85.00 strike price, with a bid of $6.10, presents an opportunity for a covered call. If shares are sold at expiration, this strategy could yield a total return of 12.90%. The $85.00 strike represents a 5% premium over the current stock price, with a 51% chance of the contract expiring worthless, allowing investors to retain both their shares and premium.
Both contracts have an implied volatility of approximately 24%, while actual trailing volatility stands at 18%.
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.
