May 2026 Options Now Available For Murphy Oil (MUR)

Analysis of Murphy Oil Corp (MUR) options reveals potential yield-boosting strategies. Selling a $20 put offers a 10.96% annualized return if it expires worthless, with a 75% probability based on current data. Conversely, a covered call strategy selling a $27.50 call yields 13.29% annualized if unexercised, with a 50% probability; both strategies are tracked by Stock Options Channel.

Analysis

Murphy Oil Corp (MUR), trading at $24.75 per share, offers distinct options-based strategies for investors. Selling the $20.00 strike put contract, with a current bid of $2.00, could result in an effective acquisition cost of $18.00 per share, a 19% discount to the prevailing market price. Analytical data indicates a 75% probability of this out-of-the-money put expiring worthless, which would translate to a 10.00% return on the cash commitment, or an annualized YieldBoost of 10.96%. Conversely, for investors holding or acquiring MUR shares, implementing a covered call strategy by selling the $27.50 strike call contract at a $3.00 bid presents an opportunity for enhanced returns. If MUR shares are called away at the May 2026 expiration, this strategy could yield a total return of 23.23% (excluding dividends) based on the current share price. There is an assessed 50% probability of this call expiring worthless, in which case the premium collected would represent a 12.12% YieldBoost, or 13.29% annualized. Notably, the implied volatility for the put option is 52% and for the call option is 49%, both of which are elevated compared to MUR's trailing twelve-month actual volatility of 46%. This discrepancy suggests that options premiums may incorporate expectations of greater future price fluctuations than observed historically.

Key Decisions for Investors

• Investors seeking to acquire Murphy Oil Corp shares at a discount to the current market price could consider selling the $20.00 strike puts, which offers a potential entry point at an effective cost of $18.00 or a 10.96% annualized yield if the option expires unexercised.
• Existing shareholders of MUR, or those purchasing shares at $24.75, might evaluate selling the $27.50 strike covered calls to generate additional income, potentially achieving a 13.29% annualized YieldBoost if the shares are not called away, though this strategy caps upside profit potential beyond the $27.50 strike price.
• Given that implied volatilities for both put (52%) and call (49%) options exceed the stock's 46% trailing historical volatility, option selling strategies may appear attractive due to relatively rich premiums, but this also signals market anticipation of increased share price volatility.