GFS January 2028 Options: Profitable Call Options and Put Strategies Analyzed

The arrival of new options contracts for GlobalFoundries Inc (GFS) expiring in January 2028 presents an interesting opportunity for income-focused investors. With nearly two years until expiration, these call options and put options offer enhanced time value compared to near-term contracts. The extended duration allows premium sellers to potentially capture higher yields, making this a strategic window for options traders evaluating income-generation strategies.

Understanding the Put Option at $45 Strike

One of the highlighted opportunities involves a put contract with a $45.00 strike price and a current bid of $7.50. For investors willing to implement a “sell-to-open” strategy, this presents a defined risk scenario. By selling this put, investors effectively agree to purchase GFS shares at $45.00 if assigned, but simultaneously collect the $7.50 premium upfront. This mechanics reduces the actual cost basis to $37.50 per share—a 18% discount versus today’s trading price of $45.78.

For investors already planning to accumulate GFS positions, this approach offers an interesting alternative to outright stock purchases. The trade-off: the $45 strike sits approximately 2% below current market levels (out-of-the-money), which analysis suggests has a 68% probability of expiring worthless. Should this occur, the premium collected would generate a 16.67% return on capital deployed, equivalent to 8.41% annualized—what options analysts refer to as the YieldBoost metric.

Evaluating the Call Options Strategy at $55 Strike

Shifting focus to the call side, investors can examine a call options contract at the $55.00 strike, currently bid at $10.00. For those already holding or acquiring GFS at current levels ($45.78), a covered call strategy becomes relevant. By selling this call contract against long stock, investors collect the $10 premium while committing to sell shares at $55 if assigned.

The math favors this approach from an income perspective: selling the call generates a combined return of 41.98% if the stock reaches $55 by January 2028 expiration—reflecting both the stock appreciation and the premium collected. This significant return figures prominently in income portfolio construction. However, the 43% probability of the call expiring worthless means retaining shares remains possible, allowing investors to keep both their stock and the premium collected, producing a 21.84% income boost (11.03% annualized).

Comparing Premium Income and Probability Outcomes

The two strategies reflect different market views. The put approach bets on stable to modestly higher prices, while the call options strategy accepts a defined upside ceiling in exchange for defined income. The put’s 68% probability of expiration offers higher likelihood of premium retention, whereas the call’s 43% worthless probability suggests greater assignment potential.

Volatility metrics reveal roughly equivalent conditions: the put shows 48% implied volatility while the call shows 50%, compared to actual trailing 12-month realized volatility of 48%. This alignment suggests neither contract appears overpriced relative to historical price swings, lending credibility to both opportunities.

Key Considerations for Options Traders

Before implementing either strategy, investors should evaluate GFS’s fundamental business trajectory and competitive positioning. The $45 put strike represents reasonable downside support, while the $55 call target reflects approximately 20% upside potential. Traders should consider whether current business momentum supports this price range over the next two years.

The January 2028 expiration window offers enough time for multiple rotations through quarterly earnings cycles, business developments, and semiconductor industry cycles. Investors implementing call options or put strategies should monitor position Greeks over time, as implied volatility, time decay, and underlying stock price changes will continuously adjust probability and return profiles throughout the holding period.

For those researching comprehensive options opportunities across broader market indices and individual securities, systematic screening tools help identify similar risk-reward combinations across the opportunity set.