January 2026 Options Now Available For Charles Schwab (SCHW)

StockOptionsChannel outlines two SCHW option plays: selling the Jan‑2026 $91 put (bid $1.32) would obligate purchase at $91 and lower the effective cost basis to $89.68 versus the $96.12 spot, the strike sits ~5% OTM with analytics estimating a 73% chance it expires worthless and yielding 1.45% on cash commitment (10.59% annualized) if so. The covered‑call alternative—selling the Jan‑2026 $97 call (bid $1.75) against shares purchased at $96.12—would cap sale proceeds at $97, represents ~1% OTM with a 51% chance to expire worthless and would provide a 2.74% total return if called (1.82% premium boost, 13.29% annualized) if it does; the note cautions this could leave upside on the table. Implied vols are 27% (put) and 29% (call) versus a 25% trailing 12‑month volatility, and StockOptionsChannel will publish ongoing odds and contract‑level charts on its site.

Analysis

The article outlines two Jan-2026 SCHW option strategies. Selling the $91 put at a $1.32 bid would obligate purchase at $91 but reduces the effective cost basis to $89.68 versus the current $96.12 share price; that strike is ~5% out-of-the-money and analytics estimate a 73% chance the put expires worthless, which would yield 1.45% on the cash commitment (10.59% annualized), excluding commissions and dividends.

The covered-call alternative is buying SCHW at $96.12 and selling the $97 call for a $1.75 bid; the $97 strike is ~1% out-of-the-money with a 51% probability of expiring worthless and would generate a 2.74% total return if called (1.82% premium boost, 13.29% annualized), while capping upside above $97. Implied volatility is 27% on the put and 29% on the call versus a trailing 12-month volatility of 25%, indicating a modest volatility premium embedded in option prices.

Practical implications are trade-offs between income generation and assignment/opportunity risk: the put seller must be prepared to own SCHW at an $89.68 basis, and the covered-call seller accepts capped gains if shares rally. The article notes StockOptionsChannel will track changing odds and provides charts, and it emphasizes reviewing SCHW’s trading history and fundamentals before implementing either strategy.

Key Decisions for Investors

• Consider selling the Jan-2026 $91 put only if you are comfortable owning SCHW at an $89.68 effective basis and accept the 27% implied volatility and 73% probability of expiry worthless
• Use the Jan-2026 $97 covered call to generate ~1.82% premium income if willing to cap upside at $97 and accept a 51% chance the option expires worthless
• Monitor implied vs. realized volatility and the odds tracked by StockOptionsChannel, size positions to account for potential assignment, and factor in commissions and any dividends when evaluating net yield