December 2026 Options Now Available For IMAX

IMAX Corp. (current price $37.64) option setups: a $37 put with a $3.60 bid would net a net cost basis of $33.40 if sold-to-open, is ~2% out-of-the-money, and has a 63% probability of expiring worthless per current analytics (yield 9.73% or 9.86% annualized). On the call side, selling a $40 covered call at a $4.10 bid from a $37.64 buy produces a 17.16% total return if called at the Dec 2026 expiry, with a 44% chance of expiring worthless and a 10.89% premium boost (11.04% annualized). Implied volatility on both contracts is ~42% versus a trailing 12-month volatility of 33%; Stock Options Channel will track odds and contract histories on its site.

Analysis

Market structure: The option quotes (IMAX $37 put bid $3.60, $40 call bid $4.10, IV ~42% vs realized ~33%) signal dealer willingness to sell downside insurance and pay for upside yield — benefiting income-seeking option sellers and retail buy-write strategies. If sizable put-selling accumulates, delta-hedging could create temporary buy-pressure into weakness; conversely heavy covered-call supply caps upside and transfers upside risk to call buyers. Expect trading-range behavior near $33–$40 over the next 3–9 months unless a box-office surprise triggers directional repricing.

Risk assessment: Tail risks are theater-specific: a major box-office failure, acceleration of streaming cannibalization, or adverse content/regulatory shock could drop IMAX >30% (to sub-$26) within quarters. Immediate (days) risk is IV spikes around release dates; short-term (weeks) risk is assignment around expiration; long-term (1–3 years) risk is secular revenue mix shift away from premium theatrical. Hidden dependencies include studio release cadence and macro discretionary spend (sensitive to CPI and real wages).

Trade implications: Direct actionable trades include selling the Dec-2026 $37 put (collected $3.60) sizing to 1–2% portfolio notional with stop-loss if IMAX < $33 or IV >55% to limit assignment pain, or buying IMAX and selling the $40 Dec-2026 call to pocket ~17% capped return. Volatility trade: construct a calendar/vertical to sell near-term options when IV>45 and buy farther-dated when term-structure flattens; beware liquidity and wide spreads.

Contrarian angles: Consensus treats these quotes as vanilla yield; it underestimates operational binary catalysts (a blockbuster or flop) that can move IV >100% intraday. The 11%+ annualized YieldBoost on covered calls is attractive only if you accept capped upside — mispricing exists if you believe studio slate will outperform consensus; contrarian buyers should size small (<=2% equity) and target earnings/major-release windows for optionality.

Key Decisions for Investors

• Establish a defined-risk short put trade: sell IMAX Dec-2026 $37 put for ~$3.60 (collect premium -> effective basis $33.40) sized to 1–2% portfolio notional; set buy-back/stop if IMAX trades below $33 or IV expands above 55% within 30 trading days.
• If bullish on theatrical recovery, buy 100–200 shares IMAX and sell the Dec-2026 $40 call (covered call) to lock ~17% gross return to expiration; cap position at 1–3% portfolio to limit sector concentration and reassess after next two major studio release dates (60–90 days).
• Implement a volatility arbitrage: sell near-term IMAX options when IV >45 and buy longer-dated options (calendar or diagonal) to capture IV mean reversion toward realized ~33%; use small notional (<=0.5% portfolio) and monitor volume/spread; unwind if IV term-structure steepens >20 vol points.
• Avoid directional overweights in pure theater operators: if assigned on puts, be ready to hold to next major slate (3–6 months) or trim if box-office receipts fall more than 20% QoQ; maintain cash buffer for margin from potential assignment.