Interesting LHX Put And Call Options For February 2026

Stock Options Channel analyzes options strategies for L3Harris Technologies (LHX), highlighting a potential sell-to-open put contract at a $250 strike price, offering a 6.60% return on cash commitment (9.75% annualized) if it expires worthless, with current odds at 59%. Additionally, the analysis covers a covered call strategy at a $260 strike, yielding a potential 10.19% return if the stock is called away, and a 7.17% boost (10.60% annualized) if the contract expires worthless, currently with 48% odds.

Analysis

L3Harris Technologies (LHX), currently trading at $252.38 per share, presents specific options strategy opportunities. Selling a put contract at the $250.00 strike price, with a current bid of $16.50, would result in an effective share purchase price of $233.50 if assigned, representing a discount to the current market price. There is a 59% assessed probability of this out-of-the-money put expiring worthless, which would yield a 6.60% return on the cash commitment, or an annualized 9.75%. For existing shareholders, selling a covered call at the $260.00 strike price, with a bid of $18.10, offers a potential total return of 10.19% if the stock is called away by the February 2026 expiration. Alternatively, if this call expires worthless, an event with a 48% probability, the premium collected would represent a 7.17% yield boost, or 10.60% annualized. The implied volatility for the put is 27% and for the call is 25%, both slightly above the actual trailing twelve-month volatility of 23%, suggesting option premiums may be somewhat inflated relative to recent historical price movements.

Key Decisions for Investors

• Investors interested in acquiring LHX shares at a discount to the current $252.38 price could consider selling the $250 strike put, targeting an effective cost basis of $233.50 or a 9.75% annualized yield if the option expires unexercised.
• Current LHX shareholders seeking to generate income could evaluate selling the $260 strike covered call due February 2026, which offers a potential 10.19% total return if called, or a 10.60% annualized yield boost if it expires worthless, while accepting a cap on further stock appreciation.
• Note that implied volatilities (25-27%) are currently higher than historical volatility (23%), which may offer favorable conditions for option sellers, but this also reflects expectations of greater future price swings; weigh this against the stated probabilities of options expiring worthless and individual risk appetite for LHX.