First Week of KMB July 2026 Options Trading

Stock Options Channel highlights two July 2026 option strategies on Kimberly‑Clark (KMB, $104.26): selling the $100 put at a $7.00 bid would obligate purchase at $100 with an effective cost basis of $93 (pre‑commissions) and sits ~4% OTM, while selling a $105 covered call at an $8.10 bid against shares bought at $104.26 would cap upside at $105 but collect premium. Current analytics put the probability of the $100 put expiring worthless at ~60% (a 7.0% cash return or 10.74% annualized “YieldBoost”) and the $105 call expiring worthless at ~47% (7.77% cash boost or 11.92% annualized); implied vol for both contracts is ~31% versus a trailing 12‑month realised vol of ~25%. These are income‑enhancing alternatives to outright equity exposure—offering meaningful yield pickup if prepared to be assigned or to forgo upside—but require weighing potential upside sacrifice, fundamentals and transaction costs.

Analysis

The article outlines two July 2026 option strategies on Kimberly‑Clark (KMB), with the stock trading at $104.26. Selling the $100 put at a $7.00 bid obligates purchase at $100 but nets an effective cost basis of $93 before commissions; that strike is roughly 4% out‑of‑the‑money and Stock Options Channel estimates a ~60% probability the put expires worthless, implying a 7.00% cash return or 10.74% annualized YieldBoost if it does.

The covered‑call alternative involves buying KMB at $104.26 and selling the $105 call at an $8.10 bid, which would cap sale proceeds at $105 but produce a 7.77% premium boost (11.92% annualized) and carries an estimated ~47% chance of expiring worthless; this approach forgoes further upside if shares rally and the article’s return figures exclude dividends and brokerage commissions.

Implied volatility on both contracts is ~31% versus a trailing 12‑month realized volatility of ~25%, signaling that option premiums are modestly elevated relative to recent stock movement; the author notes analytics (greeks and implied greeks) and that Stock Options Channel will track odds and contract history, highlighting assignment risk, upside forfeiture and transaction costs as the key considerations for income‑oriented investors.

Key Decisions for Investors

• Consider selling the July 2026 $100 put to target a 7.00% cash return (10.74% annualized) only if you are willing to be assigned and acquire KMB at an effective $93 per share (pre‑commissions) given the ~60% estimated chance of expiration worthless
• Consider a covered‑call by selling the July 2026 $105 call to capture an immediate 7.77% premium boost (11.92% annualized) if you are prepared to cap upside at $105 and accept the ~47% probability the option expires worthless
• Factor in that implied volatility (~31%) exceeds trailing realized volatility (~25%), which makes selling premium more attractive but requires monitoring IV and greeks since a rise in IV or strong share rerating increases assignment risk
• Incorporate broker commissions and the article’s exclusion of dividends into net return calculations, and use the Stock Options Channel contract‑odds charts to monitor changing probabilities before entering or rolling positions