XPeng Inc Offers New Options as Investors Weigh Potential Gains

On February 14th, fresh options for XPeng Inc (Symbol: XPEV) became available for investors. After analyzing the options chain through our YieldBoost formula, Stock Options Channel has identified a notable call contract.

Highlighted Call Contract and Potential Returns

The call contract at the $15.50 strike price currently holds a bid of 16 cents. An investor who buys shares of XPEV at the current price of $11.63 per share and sells the $15.50 call as a “covered call” commits to selling their stock at that price. If the stock reaches or exceeds the strike price before expiration on February 14th, they would enjoy a total return of 34.65%, excluding dividends and broker commissions. However, should XPeng’s stock surge further beyond this price, the investor might miss out on greater gains. Thus, reviewing XPeng’s previous trading patterns and business fundamentals is crucial.

Below is a chart showing XPeng’s trading history for the last twelve months, with the $15.50 strike price marked in red:

Analyzing the Strike Price Premium and Coverage Risks

The $15.50 strike price represents a 33% premium over the current trading price, potentially placing it out-of-the-money. This means there’s a chance the covered call could expire worthless, allowing the investor to retain both their shares and the option premium. Current analytics indicate an 84% probability of this occurring. Stock Options Channel will monitor these odds over time, providing updated charts and trading history for this contract.

If the contract does expire worthless, the premium collected would give the investor a 1.38% additional return, equivalent to an annualized yield of 11.68%, a figure we categorize as YieldBoost.

The implied volatility for this call contract stands at 75%. In contrast, the actual trailing twelve-month volatility — calculated using the last 251 trading day closing values alongside today’s price of $11.63 — is 73%. For further put and call options strategies, please explore StockOptionsChannel.com.

Check out Top YieldBoost Calls of the S&P 500 »

Related Information:

• Preferred Stock Channel
• RCKY YTD Return
• Institutional Holders of DTN

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