September 18th BVN Options: Comparing Put and Call Strategies for Income Generation

Fresh options contracts on Compania de Minas Buenaventura S.A. (BVN) hit the market today with a September 18th expiration date. With 246 days until expiration, these newly listed puts and calls offer extended time value—a critical advantage for premium collectors seeking better compensation than shorter-dated contracts would provide.

The Call Option: Generating Income From Upside Caps

Let’s start with the bullish income strategy. A $35.00 strike call is currently bidding at $3.20. For investors already holding or planning to purchase BVN at the current market price of $34.20/share, selling this call as a covered call strategy locks in a total return of 11.70% if shares get called away at expiration (excluding dividends and commissions).

The $35.00 strike sits approximately 2% above current price levels—out-of-the-money territory. This positioning creates an interesting scenario: there’s a 43% probability the call expires worthless. If that occurs, the investor retains both the shares and the $3.20 premium collected, representing a 9.36% income boost or 13.89% annualized yield.

The trade-off is clear: capped upside potential if BVN rallies significantly beyond $35.00, versus guaranteed premium income if the stock stays below the strike.

The Put Strategy: Lowering Your Entry Cost

On the defensive side, a $34.00 strike put carries a $3.10 bid. Selling-to-open this put contract commits you to purchasing BVN shares at $34.00, but the premium collected reduces your effective cost basis to $30.90 (before commissions)—a meaningful discount versus today’s $34.20 market price.

The $34.00 strike is roughly 1% below current levels, making it slightly out-of-the-money. Analytics suggest a 59% probability this put expires worthless, allowing premium sellers to pocket the full $3.10 as income—translating to 9.12% return on the cash commitment or 13.53% annualized yield.

Volatility Context: Pricing Expectations

Both options reflect elevated implied volatility. The put shows 50% IV while the call prices at 51%, compared to BVN’s actual 12-month trailing volatility of 39%. This spread suggests the market is pricing in meaningful price swings over the next nine months—important context when evaluating whether these income-generating strategies align with your risk tolerance and market outlook.

Weighing Your Options

The choice between puts and calls depends on your outlook. Call sellers cap upside but collect premium immediately, while put sellers lower their effective entry point but accept assignment risk if BVN declines sharply. Both strategies reward time decay and reduced volatility, with September 18th providing ample runway to benefit from those dynamics.