Interesting M Put And Call Options For December 2026

Stock Options Channel analyzes Macy's (M) options, highlighting potential strategies for investors. Selling the $10 put offers an 8% return on cash commitment if it expires worthless, with a 71% probability based on current data. A covered call strategy using the $15 call could yield a 32.04% return if the stock is called away, but carries a 53% chance of expiring worthless, providing a 5.24% yield boost; the implied volatilities for the put and call are 54% and 52% respectively, compared to a trailing twelve month volatility of 49%.

Analysis

Stock Options Channel presents an analysis of two options strategies for Macy's Inc. (M), which is currently trading at $11.83 per share. For investors interested in acquiring M shares at a lower price, selling the $10.00 strike put contract, with a bid of 80 cents, offers an effective purchase price of $9.20 if assigned. This represents an approximate 15% discount to the current stock price, and current analytical data suggests a 71% probability of this out-of-the-money put expiring worthless. If it does expire worthless, the seller would realize an 8.00% return on the cash commitment, or a 5.07% annualized YieldBoost. For existing shareholders, selling a covered call at the $15.00 strike price for the December 2026 expiration, with a bid of 62 cents, could result in a total return of 32.04% if the stock is called away. This strike is approximately 27% above the current price, and there's a 53% assessed probability of the call expiring worthless, in which case the premium would represent a 5.24% boost to returns (3.32% annualized YieldBoost). The implied volatility for the put is 54% and for the call is 52%, both slightly higher than Macy's actual trailing twelve-month volatility of 49%, indicating that option premiums may be somewhat elevated relative to recent historical price movements.

Key Decisions for Investors

• Investors considering acquiring Macy's shares who are comfortable with a potential purchase price of $9.20 could evaluate selling the $10.00 strike put to collect the 80 cent premium, understanding the 71% chance of it expiring worthless for an 8.00% return on cash.
• Existing Macy's shareholders looking to generate income and willing to sell their shares at $15.00 by December 2026 might consider writing the $15.00 strike covered call, which offers a potential 32.04% total return if exercised or a 5.24% yield boost if it expires worthless.
• Given that implied volatilities for these options (52-54%) are slightly above the stock's trailing twelve-month historical volatility (49%), option sellers may find current premiums relatively attractive, though this also reflects market pricing of potential future volatility.
• Before implementing these strategies, investors should align them with their specific financial goals, risk tolerance, and fundamental outlook on Macy's, particularly noting the long-dated expiration for the covered call example.