CVX September 2026 Options Begin Trading

Analysis of Chevron (CVX) options reveals potential yield-boosting strategies for investors. Selling a $130 put expiring in September 2026 offers a 9.23% return on cash commitment (6.98% annualized) if it expires worthless, a 60% probability according to current data. Simultaneously, writing a covered call at the $140 strike, also expiring in September 2026, could yield a 12.33% total return if the shares are called away, or an 8.63% premium boost (6.52% annualized) if the contract expires worthless, which has a 49% probability. Both options strategies exhibit an implied volatility of approximately 28%, compared to the stock's trailing twelve-month volatility of 25%.

Analysis

The article details two specific option strategies for Chevron Corporation (CVX), which is currently trading at $135.01 per share, aimed at either acquiring shares at a discount or generating income. Selling the September 2026 $130.00 strike put contract, with a current bid of $12.00, could result in an effective share purchase price of $118.00 if assigned, a notable discount from the current price. There is a 60% assessed probability of this put expiring worthless, in which case the seller would earn a 9.23% return on the cash commitment, equivalent to a 6.98% annualized YieldBoost. On the other hand, for investors holding CVX shares, writing a September 2026 $140.00 strike covered call, with a bid of $11.65, offers a potential total return of 12.33% (excluding dividends) if the stock is called away. If this call option expires worthless, an outcome with a 49% probability, the investor retains the shares and the premium, resulting in an 8.63% YieldBoost (6.52% annualized). Both option examples exhibit an implied volatility of approximately 28%, slightly above CVX's trailing twelve-month actual volatility of 25%, indicating that options are pricing in somewhat higher future price movements than recently observed.

Key Decisions for Investors

• Investors interested in acquiring Chevron (CVX) shares could consider selling the September 2026 $130 strike puts to potentially achieve an effective purchase price of $118.00 or earn a 9.23% yield on cash if the options expire worthless.
• Existing CVX shareholders, or those initiating a position, might evaluate writing September 2026 $140 strike covered calls to generate premium income, targeting an 8.63% YieldBoost if the options expire worthless, or a 12.33% total return if shares are called away.
• Note that the implied volatility of approximately 28% for these CVX options is slightly above the stock's 25% trailing twelve-month historical volatility, which may present a favorable risk-reward for option sellers but also reflects expectations of continued price fluctuations.