New Options Trading for Phillips 66 Presents Investment Opportunities

New options for Phillips 66 are live, signaling potential for lucrative investment strategies. Investors can explore put and call contracts as alternatives to direct stock purchases, although market dynamics may influence profitability.

Date: 07-03-2025

AI Rating: 6

Options Trading Insights for Phillips 66

The report highlights new options trading for Phillips 66 (Symbol: PSX), indicating an opportunity for investors to engage in put and call contracts. The put contract at the $115.00 strike price offers an attractive entry point for potential buyers, especially considering its current bid of $9.90. This setup allows investors to potentially lower their cost basis to $105.10 per share, which is appealing given the current stock price of $124.50. This could be considered a good strategy for investors looking to acquire shares at a discount.

The odds of the put contract expiring worthless is 66%, making it a favorable option for risk management strategies. Additionally, the expected return from this contract is 8.61%, or 6.71% annualized, highlighting a solid potential gain.

On the calls side, the report discusses a call contract at the $130.00 strike price, boasting a current bid of $12.60. Selling this covered call while owning the stock at the current price can lead to a total return of 14.54% if exercised. However, investors must consider the 48% chance of the contract expiring worthless, which would allow them to retain both shares and premium collected. This makes the covered call strategy potentially lucrative as well.

The implied volatility for both the put and call contracts aligns closely but is relatively higher than the actual trailing twelve-month volatility recorded at 27%. This difference signals caution regarding market price changes, which can affect option pricing.

Overall, this analysis indicates a favorable outlook for Phillips 66's options trading, reflecting potential avenues for investment strategies focused on capturing both discounts and premium income.

Stocks: PSX