Western Union Options Trading Sparks Investor Interest

Western Union Co attracts investor attention with new options. The possibility of a 7.50% return makes the $10.00 put contract particularly appealing.

Date: 10-02-2025

AI Rating: 7

Western Union's New Options Contracts
Today marks the start of trading new options contracts for Western Union Co (Symbol: WU), set to expire on December 19th. These new contracts draw interest from investors due to the potential time value associated with the long time until expiration, which currently stands at 312 days.

The report highlights a specific put contract at the $10.00 strike price, indicating a current bid of 75 cents. If an investor sells this contract, they agree to buy the stock at $10.00, effectively lowering their cost basis to $9.25 after collecting the premium. This is significantly more attractive compared to the current share price of $10.69, representing an approximately 6% discount. The report suggests that this could entice investors interested in acquiring WU shares.

The chances of the put contract expiring worthless stand at 58%, which adds a layer of strategy for investors. If the contract does expire worthless, they could enjoy an annualized return of 8.77% on their cash commitment of $10.00, presenting an attractive investment opportunity.

Furthermore, the implied volatility of the put contract is reported at 28%, while the actual trailing twelve-month volatility is calculated at 23%. This discrepancy in volatility could influence the attractiveness of the trading strategy outlined.

Stocks: WU