Peabody Energy (BTU) Offers October 31st Options
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
Updated: Sep 11 20250mins
Put Contract Analysis: The $18.00 put contract for BTU has a bid of $1.03, allowing investors to buy shares at $18.00 while effectively lowering their cost basis to $16.97. There is a 59% chance the contract may expire worthless, potentially yielding a 5.72% return on cash commitment.
Call Contract Overview: The $19.50 call contract has a bid of $0.85, offering a potential total return of 9.94% if the stock is called away at expiration. There is a 52% chance this contract may also expire worthless, allowing investors to retain both shares and premium, resulting in a 4.59% additional return.
Volatility Insights: Both the put and call contracts exhibit an implied volatility of approximately 75%, while the actual trailing twelve-month volatility is calculated at 57%.
YieldBoost Concept: The article discusses the concept of YieldBoost, highlighting the potential annualized returns from both the put and call contracts, which can significantly enhance investor returns.
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Analyst Views on BTU
Wall Street analysts forecast BTU stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BTU is 29.14 USD with a low forecast of 24.00 USD and a high forecast of 34.00 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: 29.430
Low
24.00
Averages
29.14
High
34.00
Current: 29.430
Low
24.00
Averages
29.14
High
34.00
Benchmark
Buy
maintain
$23 -> $32
2025-10-31
Reason
Benchmark
Price Target
$23 -> $32
2025-10-31
maintain
Buy
Reason
Benchmark raised the firm's price target on Peabody to $32 from $23 and keeps a Buy rating on the shares after the company reported Q3 adjusted EBITDA of $100M, slightly missing the firm's estimate and consensus of $106M. Looking ahead, the company believes a lot of latent capacity is being taken up by the market and noted improved pricing and additional multi-year commitments would likely be needed before investing in additional production, the analyst added.
Texas Capital
Matthew Key
Buy
initiated
$27
2025-09-24
Reason
Texas Capital
Matthew Key
Price Target
$27
2025-09-24
initiated
Buy
Reason
Texas Capital analyst Matthew Key initiated coverage of Peabody Energy with a Buy rating and $27 price target.
Texas Capital
NULL -> Buy
initiated
$27
2025-09-24
Reason
Texas Capital
Price Target
$27
2025-09-24
initiated
NULL -> Buy
Reason
Texas Capital initiated coverage of Peabody Energy with a Buy rating and $27 price target. Thermal coal has long served as the foundation of the company, but Peabody's growth strategy more recently has been focused on expanding its metallurgical coal business, the analyst tells investors in a research note. The firm believes that the company's scale and global footprint is a major differentiator relative to its U.S. peers, putting Peabody in a strong position to target growing end-markets in Asia and other emerging economies, Texas Capital added.
UBS
Myles Allsop
Neutral
maintain
$16 -> $17
2025-09-19
Reason
UBS
Myles Allsop
Price Target
$16 -> $17
2025-09-19
maintain
Neutral
Reason
UBS analyst Myles Allsop raised the firm's price target on Peabody Energy to $17 from $16 and keeps a Neutral rating on the shares.
See All Ratings
About BTU
Peabody Energy Corporation is a coal producer, providing essential products for the production of reliable energy and steel. The Company owns interests in coal mining operations located in the United States and Australia, including interests in Middlemount Coal Pty Ltd. The Company engages in the direct and brokered trading of coal and freight-related contracts. Its segments include Seaborne Thermal, Seaborne Metallurgical, Powder River Basin, Other U.S. Thermal, and Corporate and Other. The Seaborne Thermal operations consist of mines in New South Wales, Australia. The mines in that segment utilize both surface and underground extraction processes to mine low-sulfur, high Btu thermal coal. The Seaborne Metallurgical operations consist of mines in Queensland, Australia, one in New South Wales, Australia and one in Alabama, the United States. The Company owns the southern portion of the Wards Well tenement.
About the author
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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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