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ConocoPhillips shares near a three-month high as covered calls yield 1.75%
With COP closing at $133.25 on Aug. 24, selling a Sept. 25 $140 covered call priced at a $2.33 midpoint premium targets about 1.75% in 32 days.
ConocoPhillips shares have been trading just off a three-month peak, which has prompted options-focused investors to look at covered calls expiring in about a month. In an Aug. 25 article, Yahoo Finance notes COP was down slightly on Aug. 24, closing at $133.25 after a recent high around $134.89 on Aug. 20. The options example highlighted uses the Sept. 25 $140 call. Yahoo Finance states the $140 strike has a midpoint premium of $2.33 per contract, and with about 32 days until expiration, that corresponds to an annualized expected return estimate of roughly 21.0% if the strategy is repeated monthly. The article also ties the stock's strength to broader oil-market expectations. Yahoo Finance points to views that oil prices and U.S.-Iran tensions may ease, citing Sept. 2026 WTI futures near $87.83 late Monday, and argues the stock could reverse if tensions rise with additional U.S. or Iranian military action. Beyond covered calls, Yahoo Finance adds that shareholders with additional capital may consider selling out-of-the-money cash-secured puts, though it does not provide a specific put example in the excerpt provided.
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