BORR August 2026 Expiration: Fresh Options Opportunities for Strategic Traders

Borr Drilling Ltd (BORR) just unlocked a new frontier for options traders with August 2026 contracts now live on the market. With 246 days remaining until expiration, these longer-dated instruments offer a compelling advantage: sellers of both puts and calls can command significantly higher premiums compared to shorter-term contracts, making this window particularly attractive for income-focused strategies.

Understanding the Time Value Advantage

The extended time horizon is the secret sauce here. Premium decay works in favor of option sellers when you have months of runway, and BORR’s latest August 2026 chain reflects this dynamic. Traders analyzing the chain have zeroed in on two specific contracts worth deeper examination—one on the put side and one on the call side—each designed for different portfolio objectives.

The Put Strategy: Accumulating Shares at a Discount

The $3.00 put strike is currently quoted at a 5-cent bid, presenting an interesting tactical play. A trader who sells-to-open this contract is essentially agreeing to purchase BORR shares at $3.00 per share—but here’s the kicker: they pocket the premium upfront. This reduces the effective entry price to $2.95 before considering transaction costs, compared to the current market price of $3.85/share. That represents a meaningful 22% markdown relative to today’s trading levels.

What makes this particularly noteworthy is the probability math. Given current market conditions and implied volatility metrics (standing at 82% for this put), the data suggests roughly a 76% likelihood that this contract expires out-of-the-money and worthless. Should that occur, the premium collected translates to a 1.67% cash-on-cash return, or 2.47% annualized—what options specialists call the YieldBoost effect.

The Call Strategy: Capping Gains for Consistent Returns

Flipping to the call side, the $5.00 strike carries a 10-cent bid price. Here’s where covered call mechanics come into play: A BORR shareholder could sell this call against their holdings, committing to deliver shares at $5.00 when the contract matures. The premium collected, combined with capital appreciation if shares are called away at expiration, potentially generates a total return of 32.47% over the contract life. That’s a meaningful haul for equity holders seeking to boost portfolio yields.

The trade-off is accepting a ceiling on upside appreciation—if BORR’s stock price skyrockets beyond $5.00, those gains evaporate from your position. However, the analytics suggest a 54% probability that this call expires worthless, meaning you retain both your shares and the income collected. Under that scenario, the 10-cent premium represents a 2.60% return boost, or 3.85% on an annualized basis.

Volatility Considerations and Risk Assessment

Implied volatility readings offer additional context here. The put contract reflects 82% IV while the call sits at 77%, compared to actual trailing twelve-month volatility measured at 70%. This elevated implied vol creates the premium-rich environment that makes both strategies attractive in the current environment, though traders should monitor how volatility evolves as the expiration date approaches.

For BORR traders seeking specific contract recommendations and real-time updates on these probabilities and trading dynamics, detailed analysis and contract-specific data remain available through specialized options research platforms.