Turning to the calls side of the option chain, the call contract at the $59.50 strike price has a current bid of 77 cents. If an investor was to purchase shares of XOP stock at the current price level of $59.12/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $59.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 1.95% if the stock gets called away at the June 28th expiration (before broker commissions). If course, a lot of upside could potentially be left on the table if XOP shares really soar, which is why looking at the trailing twelve month trading history for SPDR S&P Oil & Gas Exploration & Production ETF, as well as studying the business fundamentals becomes important. Below is a chart showing XOP's trailing twelve month trading history, with the $59.50 strike highlighted in red:
Interesting XOP Put And Call For June 28th
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