New Options Trading Opportunity for Cheniere Energy (LNG)

New options for Cheniere Energy have begun trading. Investors can benefit from potentially higher premiums with contracts set to expire in June 2026, representing strategic alternatives for those considering purchase of LNG shares.

Date: 07-03-2025

AI Rating: 7

Options Trading for Cheniere Energy Inc. (LNG) highlights various investment strategies surrounding newly available contracts with expiration dates in June 2026. With a significant amount of time until expiration, the options present interesting opportunities for investors looking to capitalize on their positions.

The put contract available at the $210.00 strike price currently has a bid of $21.30. This implies that if an investor sells the put contract, they are agreeing to purchase the shares at $210.00 while collecting a premium that decreases their effective cost basis to $188.70. Given that this strike price represents an approximate 3% discount relative to the current trading price of $215.90, it could be a compelling proposition for investors considering entry into LNG shares. The probability of the put contract expiring worthless stands at 66%, indicating a strong likelihood that the premium will be secured.

The report also discusses a call contract at the $240.00 strike price with a bid of $23.60. If an investor buys LNG shares at $215.90 and sells this call contract, there is potential for a total return of 22.09% if the shares are called away at expiration. However, there's a 49% chance of the call contract expiring worthless, which would allow the investor to retain both the shares and the premium. The additional returns from the covered call represent a yield boost of 10.93%, providing an attractive angle for current shareholders.

The report considers both the implied and actual volatilities in the put and call contracts, which are higher than the trailing twelve-month volatility of 24%. Such volatility metrics are essential for assessing the risk and potential reward associated with these options strategies.

Stocks: LNG