NEE Options Contract Analysis and Investment Opportunities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy NEE?
Source: NASDAQ.COM
- Put Option Appeal: The current bid for the $90.00 put option is $2.30, and if an investor sells this contract, they commit to buying the stock at $90.00, effectively lowering their cost basis to $87.70, which is a 1% discount from the current price of $90.98, making it attractive for those interested in NEE.
- Yield Potential Analysis: Should the put option expire worthless, it would yield a 2.56% return on the cash commitment, equating to an annualized yield of 18.67%, highlighting the YieldBoost potential of this strategy, appealing to income-seeking investors.
- Call Option Returns: The $100.00 call option currently bids at $0.55, and if an investor buys NEE shares at $90.98 and sells this call, they could achieve a total return of 10.52% if the stock is called away at expiration, showcasing the attractiveness of this strategy.
- Risk Assessment: Current data indicates a 76% chance that the $100.00 call option will expire worthless, allowing investors to retain both their shares and the premium collected, thereby further mitigating investment risk.
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Analyst Views on NEE
Wall Street analysts forecast NEE stock price to rise
16 Analyst Rating
12 Buy
4 Hold
0 Sell
Strong Buy
Current: 92.010
Low
84.00
Averages
92.50
High
100.00
Current: 92.010
Low
84.00
Averages
92.50
High
100.00
About NEE
NextEra Energy, Inc. is an electric power and energy infrastructure company. It operates through its wholly owned subsidiaries, NextEra Energy Resources, LLC and NextEra Energy Transmission, LLC (collectively, NEER) and Florida Power & Light Company (FPL). Its segments include NEER and FPL. FPL segment is a rate-regulated electric utility engaged in the generation, transmission, distribution and sale of electric energy in Florida. FPL has approximately 35,052 megawatts of net generating capacity, over 91,000 circuit miles of transmission and distribution lines and 921 substations. The NEER segment owns, develops, constructs, manages and operates electric generation facilities in wholesale energy markets in the United States and Canada and includes assets and investments in other businesses with a clean energy focus, such as battery storage, natural gas pipelines, and renewable fuels. It owns, develops, constructs and operates rate-regulated transmission facilities in North America.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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