New Options Available for Synchrony Financial Investors

Investors eyeing Synchrony Financial have new call options available, with a particular highlight on a $65.00 strike price contract. This could result in a 6.51% total return if the stock price meets the strike before expiration.

Date: 20-02-2025

AI Rating: 7

Options Data and Potential Returns
Synchrony Financial (SYF) has introduced new options, specifically a call contract at a $65.00 strike price with a current bid of $2.10. Investors purchasing SYF shares at $63.00 could engage in a covered call strategy, aiming for a total return of 6.51% if the stock is called away at expiration. The analysis points out the current 54% chance that the option may expire worthless, allowing investors to retain both shares and the premium collected.

Yield Boost
If the covered call expires worthless, this would yield an additional 3.33% boost to the investor, annualized to 21.74%, suggesting a positive investment strategy for income-focused investors.

Volatility Considerations
The implied volatility for the call options is 41%, contrasting with the actual trailing twelve-month volatility of 35%. This indicates an expectation of stock price fluctuations, and while higher implied volatility typically signals greater risk, it can also suggest potential for larger price movements which can be favorable in option trading.

Stocks: SYF