Kimberly-Clark Options Highlight Potential Trading Strategies

Investors focus on Kimberly-Clark options for May 16 expiration. The $135 and $140 strike prices present intriguing opportunities for potential returns and strategies amid current market conditions.

Date: 20-03-2025

AI Rating: 6

Earnings and Options Analysis
Investors in Kimberly-Clark Corp. (KMB) have been presented with fresh options for the upcoming May 16th expiration. Two noteworthy contracts include a put option with a $135.00 strike price and a call option at $140.00.

The put option is currently priced at a bid of $1.05. Selling-to-open this contract could result in an effective stock purchase rate of $133.95, reflecting a discount compared to today's price of $138.45. This creates an appealing entry point for investors who are interested in acquiring shares. Furthermore, with a 64% probability that this contract might expire worthless, the potential return stands at 0.78% on the cash commitment, culminating in an annualized yield of 4.98%.

On the call side, the $140.00 strike call option offers a bid at $2.25. Should investors buy shares at $138.45 and sell the call, their total return would be 2.74% if the stock price rises sufficiently by expiration. There’s also a 53% chance that the call option could expire worthless, allowing investors to hold their shares along with the collected premium, indicating a 1.63% return on extra yield, or annualized 10.41%.

It’s important to notice that both the implied volatilities for the options are approximately at 22%, while actual trailing volatility stood at 18% over the last 250 trading days, indicating a moderate level of volatility and market interest.

Overall, while this report presents intriguing options strategies, no specific metrics such as Earnings Per Share (EPS), Revenue Growth, Net Income, Profit Margins, Free Cash Flow, or Return on Equity were mentioned. Investors should consider current strategies based on the given option analyses but must look for more comprehensive financial data to assess overall company performance.

Stocks: KMB