May 2026 Options Now Available For Charter Communications (CHTR)

StockOptionsChannel spotlights two May‑2026 option strategies on Charter Communications (CHTR, $205.90): selling the $110 put (bid $1.00) would obligate the seller to buy shares at $110 (net cost basis $109), a strike ~47% below the market with a current calculated 93% probability of expiring worthless and a premium return of 0.91% (2.20% annualized). Alternatively, buying shares and selling the $220 covered call (bid $21.00) would cap upside at $220 for a total return of 17.05% if called away, with the $220 strike ~7% OTM, a 49% chance of expiring worthless, and a premium yield boost of 10.20% (24.66% annualized). Implied volatility is wide between the put (83%) and call (54%) versus trailing 12‑month volatility of 40%; StockOptionsChannel will track and publish changing odds and contract histories, and investors should weigh the capped upside and fundamentals before implementing either trade.

Analysis

StockOptionsChannel outlines two May 2026 option strategies on Charter Communications (CHTR), current share price $205.90. Selling the $110 put (bid $1.00) commits the seller to buy at $110 (net cost basis $109) and represents an approximate 47% discount to the market; the modelled probability of that put expiring worthless is 93%, producing a 0.91% premium return (2.20% annualized). Buying shares and selling the $220 covered call (bid $21.00) would cap upside at $220, delivering a 17.05% total return if called and a 10.20% premium boost (24.66% annualized) with a 49% chance of the call expiring worthless.

The put implied volatility is 83% and the call implied volatility is 54%, while trailing 12‑month realized volatility is calculated at 40%, implying pronounced downside skew and elevated pricing for puts versus actual historical moves. That divergence means option values and the published odds are sensitive to volatility compression or spikes and that selling protection carries compensated but nontrivial tail‑risk pricing.

Trade practicalities: the deep OTM put offers a high probability of non‑assignment but a low immediate yield, while the covered call provides meaningful income at the expense of capped upside. Given the long May 2026 tenor, investors should size positions conservatively, monitor the evolving greeks/odds StockOptionsChannel publishes, and verify Charter's underlying fundamentals before implementation.

Key Decisions for Investors

• Only sell the $110 put if you are willing to own CHTR at a $109 net cost basis; size the position small given the modest 0.91% premium and long May 2026 expiration
• Consider the buy‑write (buy at $205.90 and sell the $220 May 2026 call) to capture a 10.20% immediate premium boost and potential 17.05% capped return, but accept the 49% chance the call expires worthless and the forfeited upside above $220
• Monitor implied volatility and skew (put IV 83% vs call IV 54% vs realized 40%) and avoid initiating large positions when IV appears elevated or likely to compress; reassess if odds move materially
• Use the StockOptionsChannel odds/greeks as ongoing inputs and confirm Charter's company fundamentals before committing capital; consider position limits or hedges to manage assignment and tail‑risk