December 2026 Options Now Available For Evergy (EVRG)

The article outlines two options strategies for Evergy Inc. (EVRG) shares: a cash-secured put at the $72.50 strike, offering a 3.62% annualized yield with a 59% probability of expiring worthless, while potentially allowing acquisition at a $69.30 cost basis; and a covered call strategy using the $75.00 strike, providing a 3.43% annualized premium yield (49% chance of expiring worthless) or a 5.48% total return if shares are called away. These strategies offer defined yield enhancement or discounted entry points, with implied volatilities (17-19%) slightly exceeding EVRG's 16% historical volatility.

Analysis

The provided text outlines two specific, long-dated options strategies for Evergy Inc. (EVRG) with a December 2026 expiration, framing them as potential yield-enhancing or discounted entry opportunities. The first strategy involves selling a cash-secured put at a $72.50 strike, which generates a $3.20 premium per share. This strategy presents two primary outcomes: either acquiring the stock at an effective cost basis of $69.30, a discount to the current $74.04 price, or realizing a 3.62% annualized yield if the option expires worthless, an event with a stated probability of 59%. The second strategy is a covered call for existing shareholders, involving selling a $75.00 strike call for a $3.10 premium. This either caps the total return at 5.48% if the stock is called away or provides a 3.43% annualized yield boost if the option expires worthless, which has a 49% probability. A key observation is that the implied volatilities of the options (19% for the put, 17% for the call) are slightly elevated compared to the stock's 16% trailing twelve-month historical volatility, suggesting that option premiums are marginally rich relative to recent price action.

Key Decisions for Investors

• Investors bullish on Evergy who do not yet own the stock could consider selling the December 2026 $72.50 cash-secured put to either collect a 3.62% annualized yield or acquire shares at an attractive cost basis of $69.30.
• Current EVRG shareholders seeking income enhancement could evaluate selling the December 2026 $75.00 covered call to generate a 3.43% annualized yield, but must be willing to cap their total return at 5.48% and forfeit any share price appreciation above $75.00.
• Given that implied volatility of 17-19% is slightly higher than the 16% historical volatility, the premiums from selling options on EVRG appear reasonably priced, however, investors should be mindful of the long duration until the 2026 expiration and the associated commitment.