Cencora Inc Options Trading: Insights for Investors

Cencora Inc's new option contracts present intriguing opportunities for investors. With potentially attractive premiums on both put and call options, investors may find ways to enhance returns on their stock holdings or optimize entry points into the market.

Date: 24-01-2025

AI Rating: 6

Earnings Analysis
No information is provided regarding Earnings Per Share (EPS) or the company's revenue growth, net income, or profit margins. Hence, there are no insights into these financial metrics that could impact stock prices.

Free Cash Flow (FCF)
The report does not discuss Free Cash Flow, leaving investors without knowledge of the company's cash-generating capabilities.

Return on Equity (ROE)
No data is provided on Return on Equity, which is essential for assessing how effectively management is using assets to create profits for shareholders.

Options Trading Insights
The key focus of the analysis is on the options trading activity for Cencora Inc. The introduction of new options for March 2026 provides investors with a chance to engage in strategic trading. The put option at the $230 strike price, currently bid at $9.10, presents a way to enter the stock at a lower effective price of $220.90, providing a 7% discount compared to the current share price of $247.60.

Additionally, the current odds of the put expiring worthless stand at 72%, potentially allowing investors to keep the premium collected for a return of 3.96% on the cash commitment, annualized at 3.44%.

The call option at the $270 strike price, with a bid of $12.60, suggests a total return of 14.14% if the stock is called away at expiry. However, there exists a risk that stock appreciation may be capped if this option is executed. The implied volatility for these options is reasonably low, with puts at 22% and calls at 19%, indicating that options sellers may find these to be lucrative trades. The actual trailing twelve-month volatility at 18% supports this viewpoint.

Stocks: COR