Noteworthy SFM Put and Call Options Set for January 2028
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 15 2025
0mins
Should l Buy SFM?
Source: NASDAQ.COM
Put Contract Overview: The $130.00 put contract for Sprouts Farmers Market Inc (SFM) has a bid of $23.80, allowing investors to buy shares at a cost basis of $106.20, which is attractive compared to the current price of $132.07. There is a 69% chance the contract may expire worthless, potentially yielding an 18.31% return on cash commitment.
Call Contract Overview: The $155.00 call contract has a bid of $25.00, offering a potential total return of 36.29% if the stock is called away by January 2028. There is a 43% chance this contract may also expire worthless, allowing investors to keep both their shares and the premium, resulting in an 18.93% additional return.
Volatility Insights: The implied volatility for the put contract is 41%, while for the call contract it is 39%. The actual trailing twelve-month volatility is calculated at 37%, providing context for the options' pricing.
YieldBoost Concept: The article discusses the concept of YieldBoost, which refers to the additional returns investors can achieve through options strategies, highlighting the potential benefits of both put and call contracts in the current market scenario.
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Analyst Views on SFM
Wall Street analysts forecast SFM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SFM is 114.33 USD with a low forecast of 77.00 USD and a high forecast of 160.00 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.
13 Analyst Rating
7 Buy
6 Hold
0 Sell
Moderate Buy
Current: 65.670
Low
77.00
Averages
114.33
High
160.00
Current: 65.670
Low
77.00
Averages
114.33
High
160.00
About SFM
Sprouts Farmers Market, Inc. is a specialty natural and organic food retailer. The Company brings products made with lifestyle-friendly ingredients such as organic, plant-based and gluten-free. The Company categorizes the varieties of products it sells as perishable and non-perishable. Its perishable product categories include produce, meat and meat alternatives, seafood, deli, bakery, floral and dairy and dairy alternatives. Its produce products include fruits; vegetables; toppings, refrigerated dressings & dips; miscellaneous produce, and floral. Its non-perishable product categories include grocery, vitamins and supplements, bulk items, frozen foods, beer and wine, and natural health and body care. Its beer & wine products include red wine, white wine, rose & blush, champagne & sparkling, beer, non-alcoholic, and sweet wines. Its target customer is comprised of two specific groups: health enthusiasts and selective shoppers. It operates more than 440 stores in 24 states nationwide.
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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- Technological Investment Edge: Uber's substantial investment in AI allows it to keep pace with Instacart technologically; while Cart Assistant may not be a game changer, it strengthens Uber's competitive position across its diversified platform, particularly in transportation and food delivery.
- Ongoing AI Applications: Uber is leveraging AI not only in the shopping assistant but also in driver matching, route optimization, and dynamic pricing, and is expected to continue investing in AI to better meet customer needs and drive business growth.
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- Stagnant Revenue Growth: Over the past five years, revenues at major grocery chains have barely budged, with inflation-adjusted figures showing declines; Kroger's net income margin is projected at only 2.1% for FY 2026, while Albertson's (ACI) is even narrower at 1.4%.
- Emerging Market Opportunities: Sprouts Farmers Market (SFM) is forecasted to achieve approximately 10% revenue growth in FY 2026 with a net income margin of 5.7%, highlighting its competitive edge in the natural and organic food sector against traditional grocers.
- Attractive Options Strategy: Given SFM's recent weak stock performance, investors can sell cash-secured puts to earn about 5% returns; if the stock remains above $65 by expiration, profits are realized, while a drop allows acquisition at a discount, showcasing the appeal of value investing.
See More
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See More
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- Grand Opening Activities: The grand opening weekend will feature giveaways, with the first 200 customers receiving reusable goodie bags filled with special products and a 20% discount on purchases, aimed at enhancing customer experience and driving sales.
- Community Commitment: Sprouts Farmers Market announced a $325,000 donation to the Middle Country Library Foundation to expand nutrition education and gardening programs, reflecting its commitment to community health and education, which is expected to enhance brand image.
- Diverse Product Offerings: The new store will offer over 7,000 vitamins and wellness products, alongside fresh produce and high-quality proteins, catering to diverse consumer needs and further solidifying Sprouts' leadership in the organic food market.
See More
Reminder of Class Action for Sprouts Farmers Market Investors
- Class Action Notice: Rosen Law Firm reminds investors who purchased Sprouts Farmers Market securities or sold put options between June 4, 2025, and October 29, 2025, to apply as lead plaintiffs by January 26, 2026, to potentially receive compensation.
- Lawsuit Background: The lawsuit alleges that defendants misled investors by providing overly optimistic information about Sprouts Farmers Market's growth potential while concealing significant adverse facts related to cautious consumer spending, resulting in investor losses when the truth emerged.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and recovered over $438 million for investors in 2019 alone, being ranked first by ISS Securities Class Action Services in 2017, showcasing its strong track record and expertise in this field.
- Investor Guidance: Investors are advised to carefully select law firms with proven success in leadership roles, avoiding those that merely act as intermediaries, to ensure effective legal representation and support in the class action.
See More
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- Lawsuit Timeline: A class action against Alexandria Real Estate Equities, Inc. alleges that from January to October 2025, the company failed to disclose the declining value of its life science assets, misleading investors about its prospects, with a lead plaintiff deadline of January 26, 2026.
- Market Impact: The class action for Sprouts Farmers Market, Inc. claims that from June to October 2025, the company misrepresented its customer base's resilience to economic conditions, leading to investor misjudgment on sales growth, with the same deadline of January 26, 2026.
- Competitive Pressure: DeFi Technologies Inc.'s lawsuit reveals that from May to November 2025, the company struggled to execute its arbitrage strategy and underestimated competitive impacts on revenue, with a lead plaintiff deadline of January 30, 2026, potentially leading to unmet revenue guidance.
- Liquidity Issues: The class action against Blue Owl Capital Inc. indicates that from February to November 2025, the company faced liquidity challenges due to BDC redemptions, failing to disclose asset pressures, with a deadline of February 2, 2026, which could affect future operational stability.
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