The article details two options strategies for AECOM (ACM) stock, providing tactical insights for income generation or discounted share acquisition. Selling a cash-secured $125 put for a $7.30 premium offers an effective share acquisition cost of $117.70, or a potential 6.46% annualized return if the option expires worthless (64% probability). Alternatively, a covered call strategy, involving selling the $135 call for $8.60 against shares bought at $129.06, projects an 11.27% total return if called away by August 2026, or a 7.37% annualized return if the option expires worthless (49% probability).
The provided text outlines two specific, long-dated options strategies for AECOM (ACM), which is currently trading at $129.06/share. The first is a cash-secured put, selling the August 2026 $125.00 strike put for a $7.30 premium. This strategy presents a dual-purpose opportunity: either acquiring ACM shares at an effective cost basis of $117.70 (a discount from the current price) or, if the option expires worthless, generating a 6.46% annualized return on the cash commitment, an outcome with a 64% probability according to the provided analytics. The second strategy is a covered call, involving the sale of the August 2026 $135.00 strike call for an $8.60 premium against shares held. This could yield a total return of 11.27% if the stock is called away, or an annualized yield boost of 7.37% if the option expires worthless, which has a 49% probability. A key observation is the slight elevation in implied volatility (24-26%) for these options compared to the stock's trailing twelve-month actual volatility of 23%, suggesting that option premiums are relatively rich, thus enhancing the appeal of these income-generating, option-selling strategies.
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