January 2026 Options Now Available For United Parcel Service (UPS)

StockOptionsChannel highlights two UPS options strategies around the current share price of $100.38: selling the January 2026 $91 put (bid $0.50) would obligate purchase at $91 for an effective cost basis of $90.50, represents roughly a 9% discount to spot, carries a modeled 77% chance of expiring worthless and would yield 0.55% (4.01% annualized) on the cash commitment; alternatively, buying shares and selling the $102 covered call (bid $2.67) caps upside at $102 but produces a 4.27% total return to expiration if called and has a 53% chance of expiring worthless, delivering a 2.66% (19.42% annualized) premium boost if it does. Both contracts show implied volatility near 38% versus a 12-month trailing volatility of ~34%; the write-up notes upside forgone with covered calls and excludes commissions/dividends, and StockOptionsChannel will track and publish changing odds and contract charts on its site.

Analysis

The article presents two UPS option strategies around the $100.38 spot price. Selling the January 2026 $91 put at a $0.50 bid would obligate purchase at $91 with an effective cost basis of $90.50, represents an approximate 9% discount to spot, carries a modeled 77% chance of expiring worthless, and would deliver a 0.55% cash-return or 4.01% annualized on the cash commitment (commissions/dividends excluded).

The covered-call alternative is to own UPS at $100.38 and sell the January 2026 $102 call for a $2.67 bid, which caps sale proceeds at $102 and yields a 4.27% total return if called, with a 53% modeled chance the call expires worthless and a 2.66% premium boost (19.42% annualized) if it does. Both contracts show implied volatility near 38% versus a 12‑month realized volatility of ~34%, indicating modest option premium relative to recent history and some compensation for time/value.

Key considerations are assignment risk and forgone upside with the covered call, model uncertainty if volatility or fundamentals change, and that published probabilities are greeks/implied measures to be monitored over time via the provider’s contract-tracking charts.

Key Decisions for Investors

• Consider selling the $91 Jan-2026 put only if you are willing to own UPS at an effective $90.50 and size the position to the cash required, given the 77% modeled chance of keeping the premium and the 4.01% annualized yield
• Consider the buy-and-sell $102 covered-call to generate a potential 4.27% return to Jan-2026 if you are comfortable capping upside beyond $102 and accept the 53% probability of the call expiring worthless
• Monitor implied volatility (≈38%) versus realized volatility (≈34%) and option liquidity before initiating either trade; avoid writing into a falling-IV environment or ahead of idiosyncratic news that could widen realized vol
• Include commissions and expected dividends in net-return calculations and consider hedging or using a collar if downside protection is a priority