January 2026 Options Now Available For Intuitive Machines (LUNR)

The article details two options strategies for Intuitive Machines Inc (LUNR), currently trading at $9.12, offering potential yield enhancement or a lower cost basis. A cash-secured put at the $8.00 strike, with a 23-cent premium, suggests an effective entry price of $7.77 and an annualized return of 20.99% if the put expires worthless (70% probability). Conversely, a covered call strategy using the $11.00 strike, with a 45-cent premium, could yield a 25.55% total return by January 2026 if the stock is called away, or an annualized 36.02% if the call expires worthless (50% probability), leveraging LUNR's implied volatility for income generation.

Analysis

Intuitive Machines Inc (LUNR), currently trading at $9.12/share, presents opportunities for options-based strategies aimed at either achieving a lower entry point or enhancing yield. The article highlights a cash-secured put strategy at the $8.00 strike, with a current bid of 23 cents, which would result in an effective cost basis of $7.77 if assigned. This strike represents a 12% discount to the current trading price, and there is a 70% probability of the contract expiring worthless, yielding an annualized return of 20.99% on the cash commitment.

Conversely, a covered call strategy utilizing the $11.00 strike, with a 45-cent bid expiring in January 2026, is also detailed. If LUNR shares are called away at this strike, the investor would realize a total return of 25.55%. Should the call expire worthless, which has a 50% probability, the premium collected would represent an annualized yield boost of 36.02%.

The implied volatility for the $8.00 put is 107%, while the $11.00 call shows a higher implied volatility of 166%. These figures compare to LUNR's trailing twelve-month historical volatility of 106%, suggesting market expectations for significant price movements, particularly on the upside as indicated by the call's implied volatility. Investors should consider these volatility dynamics when evaluating the risk-reward profiles of these strategies.

The analysis underscores that both strategies offer attractive potential returns, but also carry inherent risks, such as the stock not being called away for the covered call or being assigned at a higher price than desired for the cash-secured put. The decision hinges on an investor's outlook for LUNR's stock performance and their risk tolerance.

Key Decisions for Investors

• Consider a cash-secured put strategy for LUNR at the $8.00 strike to potentially acquire shares at an effective $7.77 cost basis or earn an annualized 20.99% premium if the option expires worthless.
• Evaluate implementing a covered call strategy on LUNR using the $11.00 strike expiring in January 2026 to target a 25.55% total return if shares are called away, or an annualized 36.02% premium income if the option expires worthless.
• Assess LUNR's fundamental outlook and your conviction on its future price trajectory, given the high implied volatilities (107% for puts, 166% for calls) relative to its 106% historical volatility, which signals expected significant price fluctuations.