Camden Property Trust (CPT) Options Begin Trading for December 19th Expiration

Camden Property Trust's (CPT) December 19th options have begun trading, with a put contract at $100.00 and a call contract at $105.00. The put contract has a current bid of $1.00, while the call contract has a current bid of 50 cents. Selling-to-open the put contract could result in a 1.00% return, while selling-to-open the call contract could result in a 3.80% return if the stock is called away at the December 19th expiration. The options are out-of-the-money by approximately 2% and 3%, respectively.

Camden Property Trust (CPT) has seen its December 19th options begin trading, with a put contract at $100.00 and a call contract at $105.00. The put contract has a current bid of $1.00, while the call contract has a current bid of 50 cents. This article explores the potential returns from selling-to-open these options, given their out-of-the-money status by approximately 2% and 3%, respectively.

Selling-to-open the put contract at $1.00 could result in a 1.00% return, assuming the stock price remains above $100.00 at expiration. This strategy would be beneficial if the market expects a downward correction in CPT's stock price, as it would provide a risk-free return. Conversely, selling-to-open the call contract at 50 cents could yield a 3.80% return if the stock is called away at the December 19th expiration. This strategy is suitable for investors who believe that CPT's stock price will increase, as it would generate a substantial profit if the stock price reaches $105.00 by expiration.

It is essential to consider the current market sentiment and CPT's recent performance when evaluating these options. CPT's stock prices have plummeted 14.6% over the past 52 weeks, underperforming the Real Estate Select Sector SPDR Fund (XLRE) and the S&P 500 Index. However, analysts remain cautiously optimistic about CPT's prospects, with a consensus "Moderate Buy" rating overall, according to Barchart.

Given CPT's recent performance and the market's expectations, selling-to-open the put contract at $1.00 could be an attractive strategy for risk-averse investors. Conversely, selling-to-open the call contract at 50 cents could generate significant returns for investors who believe in CPT's long-term growth prospects. As always, it is crucial to conduct thorough research and consider your risk tolerance before making investment decisions.