Trading Opportunities in NTR: New February 27th Expiration Contracts

Fresh options contracts for Nutrien Ltd (NTR) commenced trading today with a February 27th expiration date. Through comprehensive analysis of the NTR options chain, two standout opportunities have emerged that merit investor attention.

The Covered Call Strategy: $62.00 Strike

For those bullish on NTR at its current market price of $59.90 per share, the call contract at the $62.00 strike presents an interesting income-generating approach. With a bid price of $1.25, selling this call while simultaneously holding NTR stock creates a covered call position. The premium collection, combined with potential share appreciation to $62.00, generates a combined return of 5.59% if assignment occurs at expiration—and this doesn’t include any dividend distributions.

The $62.00 strike sits approximately 4% above current trading levels, creating a reasonable buffer before shares face assignment. Analytics suggest there’s a 56% probability this contract expires worthless, allowing traders to retain both their NTR shares and the collected premium. If this scenario unfolds, the $1.25 premium translates to a 2.09% immediate return, or 15.23% when annualized—what options strategists refer to as the YieldBoost component.

The Put-Selling Strategy: $56.00 Strike

Conversely, those seeking an alternative entry point into NTR shares might consider the put contract at $56.00. Currently bidding at $1.15, selling this put contract establishes a commitment to purchase shares at that strike price. The premium received reduces the effective cost basis to $54.85, representing a meaningful 7% discount versus the stock’s current $59.90 price tag.

The probability modeling shows an estimated 72% likelihood that this put expires worthless—potentially indicating reasonable downside protection at this strike level. Should expiration occur without assignment, the $1.15 premium equates to a 2.05% return on the cash reserved, which annualizes to 14.99% YieldBoost.

Volatility Context

The implied volatility landscape differs between these two strategies. The put contract reflects 35% implied volatility, whereas the call shows 40% implied volatility. For context, Nutrien’s actual trailing twelve-month realized volatility—calculated using 250 trading days of closing data—stands at 28%. This volatility differential may inform risk considerations for each approach.

Strategic Considerations

Both strategies require careful evaluation of NTR’s business fundamentals and twelve-month price action before execution. While the put-selling approach offers an attractive discounted entry, and the covered call provides steady income, traders must weigh their market outlook and risk tolerance accordingly. Historical price patterns and underlying company performance remain critical inputs for decision-making.