Turning to the calls side of the option chain, the call contract at the $72.50 strike price has a current bid of 67 cents. If an investor was to purchase shares of COP stock at the current price level of $70.62/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $72.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 3.61% if the stock gets called away at the May 23rd expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if COP shares really soar, which is why looking at the trailing twelve month trading history for ConocoPhillips, as well as studying the business fundamentals becomes important. Below is a chart showing COP's trailing twelve month trading history, with the $72.50 strike highlighted in red:
COP May 23rd Options Begin Trading
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