EZCORP Offers $22.50 Call Option with 7.34% Potential Return
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 07 2026
0mins
Source: NASDAQ.COM
- Options Contract Analysis: The current bid for EZCORP's $22.50 call option stands at $0.75, and if an investor buys EZPW shares at $21.66 and sells this option, they could achieve a total return of 7.34% by the April 17 expiration, highlighting the attractiveness of this strategy.
- Risk and Reward: With the strike price approximately 4% above the current stock price, there is a possibility that the option may expire worthless, allowing the investor to retain both the shares and the premium collected, which could represent an additional 3.46% return or an annualized yield of 12.64%, enhancing the investor's profit potential.
- Volatility Comparison: The implied volatility of the call option is 54%, while the actual trailing twelve-month volatility is 31%, indicating a higher market expectation for future price fluctuations of EZPW stock, prompting investors to carefully assess risks.
- Market Dynamics Monitoring: Stock Options Channel will continuously track the market dynamics of this options contract, including changes in the probability of success, assisting investors in making more informed decisions and enhancing the effectiveness of their investment strategies.
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Analyst Views on EZPW
Wall Street analysts forecast EZPW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EZPW is 24.75 USD with a low forecast of 22.00 USD and a high forecast of 28.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
3 Buy
2 Hold
0 Sell
Moderate Buy
Current: 20.980
Low
22.00
Averages
24.75
High
28.00
Current: 20.980
Low
22.00
Averages
24.75
High
28.00
About EZPW
EZCORP, Inc. is a provider of pawn transactions in the United States and Latin America. The Company also sells pre-owned and recycled merchandise, primarily collateral forfeited from pawn lending operations and merchandise purchased from customers. The Company’s U.S. Pawn segment includes its EZPAWN, Value Pawn & Jewelry and other branded pawn operations in the United States. Its Latin America Pawn segment includes its Empeno Facil, Cash Apoyo Efectivo and other branded pawn operations in Mexico, as well as its GuatePrenda and MaxiEfectivo pawn operations in Guatemala, El Salvador, and Honduras (GPMX). The Company’s Other Investments segment primarily includes its equity interest in Cash Converters International Limited (Cash Converters) and its investment in and notes receivable from Founders One, LLC (Founders). At its pawn stores, it advances cash against the value of collateralized tangible personal property and sells merchandise to customers looking for good value.
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.
EZCORP Offers $22.50 Call Option with 7.34% Potential Return
- Options Contract Analysis: The current bid for EZCORP's $22.50 call option stands at $0.75, and if an investor buys EZPW shares at $21.66 and sells this option, they could achieve a total return of 7.34% by the April 17 expiration, highlighting the attractiveness of this strategy.
- Risk and Reward: With the strike price approximately 4% above the current stock price, there is a possibility that the option may expire worthless, allowing the investor to retain both the shares and the premium collected, which could represent an additional 3.46% return or an annualized yield of 12.64%, enhancing the investor's profit potential.
- Volatility Comparison: The implied volatility of the call option is 54%, while the actual trailing twelve-month volatility is 31%, indicating a higher market expectation for future price fluctuations of EZPW stock, prompting investors to carefully assess risks.
- Market Dynamics Monitoring: Stock Options Channel will continuously track the market dynamics of this options contract, including changes in the probability of success, assisting investors in making more informed decisions and enhancing the effectiveness of their investment strategies.
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EZCORP Reports 27% Annual EPS Growth, Enhancing Investor Confidence
- Profitability Improvement: EZCORP has achieved a remarkable 27% annual growth in earnings per share (EPS) over the past three years, indicating a sustained improvement in profitability that may attract more investor interest.
- EBIT Margin Growth: The company's EBIT margin has increased from 9.8% to 12% in the last 12 months, reflecting enhanced operational efficiency and potentially boosting investor confidence in the company's future profitability.
- Revenue Growth Trend: With revenues on an upward trajectory, combined with the growth in EPS and EBIT, EZCORP demonstrates increasing competitiveness in the market, suggesting a promising outlook for sustainable financial performance.
- Insider Ownership: EZCORP insiders hold shares worth $122 million, indicating a strong alignment of interests between management and shareholders, which may further enhance investor trust in the company's strategic direction.
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