Interesting OLN Put And Call Options For October 2026

The article details two options strategies for Olin Corp. (OLN), trading at $18.70. Selling a $15.00 strike put for $2.20 offers a potential $12.80 acquisition cost or a 14.67% premium yield if the 74% likely worthless expiration occurs. Alternatively, a covered call at the $22.50 strike for $2.65 could generate a 34.49% return if shares are called away by October 2026, or an 11.81% annualized premium if the 51% likely worthless expiration occurs.

Analysis

The provided text outlines two distinct, long-dated options strategies for Olin Corp. (OLN), which is currently trading at $18.70 per share. The first strategy involves selling a cash-secured put with a $15.00 strike price expiring in October 2026. This generates an immediate premium of $2.20, effectively lowering the share acquisition cost to $12.80 if assigned, a 20% discount from the current price. Analytics suggest a 74% probability of this option expiring worthless, in which case the seller would realize a 14.67% return on the cash collateral, or a 12.22% annualized yield. The second strategy is a covered call, involving the purchase of OLN stock at $18.70 and selling a $22.50 strike call for a $2.65 premium. This strategy caps the upside at $22.50 but offers a potential total return of 34.49% if the shares are called away. There is a 51% probability of this call expiring worthless, allowing the investor to retain the shares and a premium representing an 11.81% annualized yield boost. Notably, the implied volatilities for the put (62%) and call (54%) are elevated compared to the stock's trailing twelve-month actual volatility of 52%, indicating that option premiums are currently rich.

Key Decisions for Investors

• For investors bullish on OLN but seeking a lower entry point, selling the $15.00 strike put offers a way to potentially acquire shares at an effective cost of $12.80 or earn an attractive 12.22% annualized yield on the cash commitment.
• Current or new shareholders could consider the covered call strategy at the $22.50 strike to generate an 11.81% annualized yield boost and achieve a potential total return of 34.49% by October 2026, though this strategy forfeits any upside beyond the strike price.
• The elevated implied volatility in both options relative to the stock's 52% trailing historical volatility suggests that premiums are rich, presenting a favorable environment for option sellers but also signaling heightened market expectations for future price swings.
• As the analysis is purely tactical and focused on options mechanics, these strategies should only be implemented after conducting thorough due diligence on Olin Corp.'s underlying business fundamentals.