New Options for Intuitive Machines Show Potential Returns

Investors eye new options for Intuitive Machines Inc. The March 28th contracts present opportunities for attractive premiums, suggesting positive market interest. Stocks might respond favorably to intriguing investment alternatives.

Date: 06-02-2025

AI Rating: 7

Options Trading Insights
Investors in Intuitive Machines Inc (LUNR) are presented with new opportunities through options trading. The March 28th put and call contracts offer insights into investor sentiment and potential returns. The put contract at a $19.00 strike shows a premium of $4.00, resulting in a cost basis of $15.00 if exercised. This creates an attractive scenario for buyers, especially given the current stock price of $19.66. Moreover, the put option has a 65% chance of expiring worthless, providing a potential return of 21.05% on the cash commitment, which annualizes to 153.81%.

On the other side, the call contract at a $24.00 strike offers a premium of $3.15, suggesting the possibility of a 38.10% return if the stock is called away. This represents a significant upside potential for current holders of LUNR shares. The probability of the call option expiring worthless stands at 51%, allowing investors to keep their shares and profits in that scenario, with a substantial annualized return of 117.06% if exercised.

The implied volatility for both contracts indicates a high level of market uncertainty, with 165% for the put and 161% for the call. In contrast, the historical volatility based on the last 250 trading days is lower at 128%, implying that the market might see potential fluctuations in LUNR's stock price.

Potential Impact on Stock Prices
This analysis of the options trading highlights positive investor behavior and interest towards Intuitive Machines. The favorable risk-reward profile of the put and call options could lead to increased trading activity and potential upward momentum for LUNR shares. Investors looking for entry points might consider these options favorably, pushing stock prices higher due to heightened demand. Moreover, these movements might reflect positively on the company's perceived value in a competitive market.

Stocks: LUNR