September 2026 Options Now Available For Mondelez International (MDLZ)

The article discusses potential options strategies for Mondelez International (MDLZ) involving selling put options and covered call strategies. Selling the $57.50 put offers a potential 4.61% return on cash commitment (3.48% annualized) with a 75% probability of expiring worthless, while a covered call strategy at $67.50 could yield a 10.48% total return if the stock is called away, or a 7.48% boost (5.65% annualized) if the contract expires worthless, with a 46% probability of that occurring; implied volatility for the put and call contracts are 25% and 24% respectively, compared to the stock's actual trailing twelve month volatility of 21%.

Analysis

The article details two specific options strategies for Mondelez International (MDLZ), currently trading at $65.53 per share, offering potential avenues for investors with differing objectives. Selling a put contract at the $57.50 strike price, with a current bid of $2.65, presents an opportunity to acquire MDLZ shares at an effective cost basis of $54.85, representing a 12% discount to the current market price. This out-of-the-money put has a 75% statistical probability of expiring worthless, in which case the seller would realize a 4.61% return on cash commitment, or a 3.48% annualized YieldBoost. Conversely, for existing MDLZ shareholders, selling a covered call at the $67.50 strike price, with a bid of $4.90, could generate a total return of 10.48% if the stock is called away at the September 2026 expiration. If this call option, which is approximately 3% out-of-the-money, expires worthless (a 46% probability), the investor retains their shares and a 7.48% premium boost, or 5.65% annualized YieldBoost. The implied volatility for the put (25%) and call (24%) contracts are slightly elevated compared to MDLZ's actual trailing twelve-month volatility of 21%, suggesting that option premiums reflect a marginally higher anticipated price fluctuation than historically observed.

Key Decisions for Investors

• Investors seeking to acquire Mondelez International shares at a discount to the current price might consider selling the $57.50 strike put, thereby collecting premium while establishing a lower potential entry point at $54.85.
• Current Mondelez shareholders aiming to enhance yield on their holdings could evaluate the covered call strategy at the $67.50 strike, accepting a cap on upside potential in exchange for upfront premium income and a potential 10.48% total return if called by September 2026.
• Investors should note the slightly higher implied volatility in MDLZ options (24-25%) compared to its 21% historical volatility, which benefits option sellers but may also signal market expectations of moderately increased price movement.