Trading Strategies For May 15th Options On Centrus Energy (LEU): A Complete Guide

New options contracts expiring on May 15th recently became available for Centrus Energy Corp (LEU), presenting traders with fresh opportunities to generate income or establish positions ahead of that specific date. With substantial time value embedded in these newly listed contracts, option sellers face an attractive environment to collect premiums. This analysis examines two key strategies identified through options chain analysis: a put-selling approach and a covered call technique, both showcasing the income generation potential available to disciplined traders willing to accept defined risks.

The current trading price for LEU sits at approximately $298.87 per share, establishing a reference point for understanding how the May 15th expiration options sit relative to current market levels. Understanding how these contracts stack against historical price movements and implied volatility levels becomes essential for informed decision-making.

Understanding The Put Selling Strategy For May 15th Expiration

Put selling represents one income-generation approach available to investors with adequate capital reserves. At the $290.00 strike price, put contracts show a bid price of $49.70, creating an entry point for traders willing to assume an obligation to purchase shares at the predetermined level.

An investor executing a short put position at this strike commits to buying LEU shares at $290.00 if assigned, but receives the $49.70 premium immediately. This premium effectively reduces the net acquisition cost to $240.30 per share—substantially below the current market price of $298.87. For investors already seeking to build a position in LEU, this approach transforms a passive waiting strategy into an active income-generating alternative.

The $290.00 strike sits approximately 3% below current trading levels, placing it out-of-the-money (OTM). This positioning matters because it means the put contract could expire worthless if the stock stays above $290.00 through the May 15th expiration date. Current analytical data suggests approximately 65% probability of this outcome occurring.

Should the contract expire worthless, the $49.70 premium collected represents a 17.14% return on the $290.00 cash commitment over the time period leading to May 15th expiration. On an annualized basis, this equates to approximately 57.41% annual return potential—what options traders often refer to as the income yield or premium return metric.

The Covered Call Alternative: Call Selling Mechanics

Call selling through covered call strategies offers a different approach for investors already holding or willing to purchase LEU shares. At the $330.00 strike price, call contracts display a bid of $53.30, representing the premium available to call sellers.

This strategy involves purchasing LEU at the current market price ($298.87) and simultaneously selling call contracts against those shares, committing to deliver them at $330.00 if assigned. The $53.30 premium collected enhances the overall return profile. If shares get called away at the May 15th expiration, the total profit encompasses both the price appreciation ($330.00 - $298.87 = $31.13 per share) and the premium ($53.30), yielding a combined return of 28.25% before accounting for transaction costs.

The $330.00 strike represents approximately 10% premium above current trading levels, placing these calls out-of-the-money as well. This spacing provides the stock room to appreciate while still maintaining upside capture potential if prices remain subdued. However, traders should recognize that if LEU shares soar significantly above $330.00, they’ll miss the additional appreciation beyond that ceiling—a classic trade-off inherent in covered call strategies.

The probability that call contracts expire worthless (leaving investors with shares plus premium intact) currently sits near 45%, based on existing analytical metrics. Should this occur, investors retain their stock position while keeping the $53.30 premium, representing a 17.83% boost to returns or approximately 59.74% annualized yield.

Comparing Income Potential Across Both Strategies

Both the May 15th put and call strategies showcase meaningful income potential, though they serve different investment objectives. The put approach suits investors seeking to accumulate shares at discounted prices while collecting premium income simultaneously. The call strategy benefits shareholders wanting to enhance portfolio returns through covered strategies while accepting a defined cap on appreciation.

Return comparison reveals similar annualized yield levels between strategies (57.41% for puts, 59.74% for calls), suggesting comparable risk-adjusted compensation across both approaches. However, probability distributions differ: puts show higher probability (65%) of expiring worthless, while calls show lower probability (45%), reflecting different underlying scenarios.

May 15th Options: Managing Risk And Volatility

Volatility levels significantly influence option pricing and expected outcomes. The put contracts on LEU show 94% implied volatility, while call contracts display 96% implied volatility. These elevated levels indicate substantial price movement expectations embedded in market pricing. By comparison, the actual trailing twelve-month realized volatility for LEU calculates to approximately 92% based on historical daily closing price movements—suggesting current implied volatility levels align reasonably with demonstrated price dynamics.

Understanding this volatility context matters because it affects the reliability of probability estimates. Higher volatility environments produce wider expected price ranges and greater uncertainty, potentially affecting whether options expire in-the-money or out-of-the-money.

The May 15th expiration date provides roughly 109 days for price movements to unfold, offering meaningful time decay benefits to option sellers. As expiration approaches and time value declines, option premiums typically erode—favoring sellers and potentially allowing profitable exits for positions established at current levels.

Investors considering either the May 15th put-selling or covered call strategies should evaluate their specific risk tolerance, capital availability, and market outlook. These approaches represent tactical examples of income generation within the options market structure, demonstrating how premium collection can enhance returns when executed within appropriate risk parameters.