KMB January 2026 Options Begin Trading

Stock Options Channel highlighted newly listed January 2026 options on Kimberly‑Clark (858 days to expiry) as potential income trades: a $125 put with an $8 bid would set an effective purchase price of $117 versus the $127.99 spot, while a $130 call at a $12.50 bid can be sold as a covered call on existing or newly purchased stock. The platform cites a 99% probability these contracts expire worthless, equating to a 6.40% (2.72% annualized) yield on the put cash commitment and a 9.77% (4.15% annualized) premium boost for the covered call, but notes the trade-off of capped upside if shares rally; trailing 12‑month volatility is 16%.

Analysis

Stock Options Channel highlighted newly listed January 2026 options on Kimberly-Clark (858 days to expiry) that offer elevated time value for premium sellers. The $125 put carries an $8.00 bid, which would set an effective purchase price of $117.00 versus the current spot of $127.99; the platform reports the contract is ~2% out‑of‑the‑money and assigns a 99% probability of expiring worthless, implying a 6.40% return on the cash commitment (2.72% annualized).

On the call side, the $130 strike shows a $12.50 bid and, if sold as a covered call against shares bought at $127.99, would produce an 11.34% total return if called away (9.77% premium boost, 4.15% annualized), while likewise being ~2% out‑of‑the‑money with a 99% reported chance of expiring worthless. The article explicitly flags the trade‑off that covered calls cap upside and put sellers face assignment obligations.

The piece notes a trailing 12‑month volatility of 16% (250 trading days plus today), and emphasizes that long‑dated contracts embed higher absolute time value; Stock Options Channel will track greeks, implied odds and contract trading history. Investors should weigh assignment risk, excluded dividends/commissions, and changing implied volatility when assessing these income trades.

Key Decisions for Investors

• Consider selling the $125 Jan 2026 put if you are willing to own KMB at an effective cost basis of $117; the trade yields 6.40% on cash (2.72% annualized) but carries assignment risk and broker costs
• If you already own or plan to buy KMB near $127.99, consider selling the $130 Jan 2026 covered call to capture a 9.77% premium boost and up to 11.34% total return if called, while accepting capped upside beyond $130 and verifying dividend and tax implications
• Monitor the published 99% expire‑worthless odds, the option greeks and implied volatility versus the 16% trailing volatility; adjust position size, hedge or close positions if implied vol rises materially or if spot moves significantly before expiration