Interesting XP Put And Call Options For February 2026

The article details tactical options strategies for XP Inc. (XP) stock, outlining a cash-secured put at the $17.00 strike with a potential 10.20% annualized yield if unassigned, or a discounted entry at $15.95 if assigned. Concurrently, it presents a covered call strategy utilizing the $19.00 strike, which could generate a 12.09% total return if the stock is called away or an 11.85% annualized premium boost if the option expires worthless. These strategies offer investors yield enhancement opportunities and specific entry/exit points for XP shares, with probabilities of 64% and 49% respectively for the options expiring worthless, framed against XP's implied and historical volatility.

Analysis

The article outlines two specific options strategies for XP Inc. (XP), which is currently trading at $18.11 per share, aimed at yield enhancement or acquiring shares at a discount. The first strategy involves selling a cash-secured put at a $17.00 strike price, which provides the seller with a $1.05 premium. This either creates an effective purchase price of $15.95 if assigned—an approximate 11.9% discount from the current market price—or results in a 10.20% annualized yield if the option expires worthless, an event with a stated 64% probability. The second strategy is a covered call, selling the $19.00 strike call with a February 2026 expiration against shares purchased at $18.11. This generates a $1.30 premium, leading to a potential total return of 12.09% if the stock is called away, or an 11.85% annualized yield boost if the option expires unexercised, which has a 49% probability. The analysis of volatility is notable: the put's implied volatility is 48% and the call's is 42%, while the stock's actual trailing twelve-month volatility is 41%. The elevated implied volatility in the put option relative to historical levels suggests that option premiums are currently rich, particularly for sellers of puts.

Key Decisions for Investors

• Investors bullish on XP Inc. but seeking a lower entry point could sell the $17.00 strike put to either acquire shares at an effective cost of $15.95 or generate a 10.20% annualized yield if the stock remains above $17.00.
• Current shareholders or those initiating a new position can consider selling the February 2026 $19.00 covered call to generate an 11.85% annualized yield, but must accept a capped total return of 12.09% if the stock appreciates beyond the strike price.
• The elevated implied volatility on the put option (48%) compared to historical volatility (41%) signals that while premium income is attractive, it comes with the market's expectation of significant price swings, a key risk factor to monitor.
• These are tactical strategies for investors who have already formed a fundamental view on XP, as the article primarily offers frameworks for yield enhancement and strategic entry rather than a directional thesis on the stock itself.