Noteworthy SFM Put and Call Options Set for January 2028
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 15 2025
0mins
Should l Buy SFM?
Source: NASDAQ.COM
Put Contract Overview: The $130.00 put contract for Sprouts Farmers Market Inc (SFM) has a bid of $23.80, allowing investors to buy shares at a cost basis of $106.20, which is attractive compared to the current price of $132.07. There is a 69% chance the contract may expire worthless, potentially yielding an 18.31% return on cash commitment.
Call Contract Overview: The $155.00 call contract has a bid of $25.00, offering a potential total return of 36.29% if the stock is called away by January 2028. There is a 43% chance this contract may also expire worthless, allowing investors to keep both their shares and the premium, resulting in an 18.93% additional return.
Volatility Insights: The implied volatility for the put contract is 41%, while for the call contract it is 39%. The actual trailing twelve-month volatility is calculated at 37%, providing context for the options' pricing.
YieldBoost Concept: The article discusses the concept of YieldBoost, which refers to the additional returns investors can achieve through options strategies, highlighting the potential benefits of both put and call contracts in the current market scenario.
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Analyst Views on SFM
Wall Street analysts forecast SFM stock price to rise
13 Analyst Rating
7 Buy
6 Hold
0 Sell
Moderate Buy
Current: 67.630
Low
77.00
Averages
114.33
High
160.00
Current: 67.630
Low
77.00
Averages
114.33
High
160.00
About SFM
Sprouts Farmers Market, Inc. is a specialty natural and organic food retailer. The Company brings products made with lifestyle-friendly ingredients such as organic, plant-based and gluten-free. The Company categorizes the varieties of products it sells as perishable and non-perishable. Its perishable product categories include produce, meat and meat alternatives, seafood, deli, bakery, floral and dairy and dairy alternatives. Its produce products include fruits; vegetables; toppings, refrigerated dressings & dips; miscellaneous produce, and floral. Its non-perishable product categories include grocery, vitamins and supplements, bulk items, frozen foods, beer and wine, and natural health and body care. Its beer & wine products include red wine, white wine, rose & blush, champagne & sparkling, beer, non-alcoholic, and sweet wines. Its target customer is comprised of two specific groups: health enthusiasts and selective shoppers. It operates more than 440 stores in 24 states nationwide.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Investors Eye Opportunities in Undervalued Stocks
- Sprouts Farmers Market Undervalued: Sprouts Farmers Market stock has plummeted over 60% since its peak in 2024, now trading at less than 12 times the projected earnings of $5.74 per share, significantly below the analyst target of $108.73, indicating a market misunderstanding of its growth potential in the health food sector.
- Progressive Insurance Value: Progressive stock is currently priced at less than 13 times earnings, with a projected dividend yield of nearly 6.7%, and despite slowing revenue growth, the company continues to perform well in the insurance industry, highlighting its investment appeal.
- PayPal's Market Control: PayPal stock is valued at less than eight times expected earnings of $5.34 per share, and despite fierce competition in the digital payment space, it still commands about 40% of the market, demonstrating its strong position in the industry.
- Potential of New CEO: PayPal is set to welcome new CEO Enrique Lores, who is expected to bring fresh ideas and perspectives, potentially revitalizing the company and helping it maintain its competitive edge in a crowded market.
See More
Promethos Capital Fully Exits Sprouts Farmers Market Stake
- Stake Change: Promethos Capital sold its entire holding of 34,935 shares in Sprouts Farmers Market for approximately $3.80 million, indicating a significant decline in confidence as the fund's position value dropped entirely.
- Performance Decline: As of February 13, 2026, Sprouts Farmers Market shares traded at $68.96, reflecting a 60.9% drop over the past year, significantly underperforming the S&P 500 by 73 percentage points, highlighting severe market challenges.
- Portfolio Reallocation: The sale reduced Sprouts Farmers Market's share to 1.02% of Promethos Capital's AUM, with Taiwan Semiconductor Manufacturing now being the largest holding, indicating a strategic shift in the fund's investment focus.
- Future Prospects: Despite Promethos Capital's exit, Sprouts Farmers Market is actively expanding with plans to reach 1,400 locations, and its differentiated product strategy and innovation capabilities may present opportunities for long-term investors.
See More
Promethos Capital Exits Entire Position in Sprouts Farmers Market
- Position Liquidation: On February 13, 2026, Promethos Capital sold its entire holding of 34,935 shares in Sprouts Farmers Market, valued at approximately $3.80 million, indicating a significant reduction in confidence and resulting in a decline in the fund's quarter-end position value.
- Poor Market Performance: As of February 13, 2026, Sprouts Farmers Market shares traded at $68.96, reflecting a 60.9% drop over the past year, significantly underperforming the S&P 500 by 73 percentage points, highlighting a decline in the company's competitive position.
- Portfolio Adjustment: The Sprouts Farmers Market position represented 1.02% of Promethos Capital's AUM, and following the liquidation, the fund's top five holdings shifted to include Taiwan Semiconductor and Novartis, indicating a strategic pivot towards other sectors.
- Future Growth Potential: Despite Promethos Capital's exit, Sprouts Farmers Market is actively expanding, aiming for 1,400 locations in the long term, with 70% of its products being attribute-driven, showcasing its differentiated competitive advantage in the health food market.
See More
Uber Eats Launches AI Shopping Assistant to Compete with Instacart
- AI Shopping Assistant Launch: Uber Eats has introduced the Cart Assistant, an AI tool that can automatically add items from handwritten shopping lists or recipe screenshots to online shopping baskets, displaying prices and promotions, thereby enhancing user shopping experience and customer loyalty.
- Intensified Market Competition: The launch of Cart Assistant intensifies competition between Uber Eats and Instacart, with Instacart's gross transaction value nearing $40 billion annually, while Uber's retail business is projected to reach a $12 billion annual run rate by 2025, highlighting the significant potential in the retail market for both companies.
- Technological Investment Edge: Uber's substantial investment in AI allows it to keep pace with Instacart technologically; while Cart Assistant may not be a game changer, it strengthens Uber's competitive position across its diversified platform, particularly in transportation and food delivery.
- Ongoing AI Applications: Uber is leveraging AI not only in the shopping assistant but also in driver matching, route optimization, and dynamic pricing, and is expected to continue investing in AI to better meet customer needs and drive business growth.
See More
Grocery Sector Faces Challenges and Opportunities
- Low Industry Valuations: Excluding giants like Walmart and Costco, Kroger Company (KR) trades at 12.7x forward earnings estimates, significantly below the S&P 500, indicating a cautious market sentiment reflected in the grocery sector's average valuation of just 11.3x.
- Stagnant Revenue Growth: Over the past five years, revenues at major grocery chains have barely budged, with inflation-adjusted figures showing declines; Kroger's net income margin is projected at only 2.1% for FY 2026, while Albertson's (ACI) is even narrower at 1.4%.
- Emerging Market Opportunities: Sprouts Farmers Market (SFM) is forecasted to achieve approximately 10% revenue growth in FY 2026 with a net income margin of 5.7%, highlighting its competitive edge in the natural and organic food sector against traditional grocers.
- Attractive Options Strategy: Given SFM's recent weak stock performance, investors can sell cash-secured puts to earn about 5% returns; if the stock remains above $65 by expiration, profits are realized, while a drop allows acquisition at a discount, showcasing the appeal of value investing.
See More
"BJ's, Kroger, and 8 Additional Stocks Poised to Gain from Retail Sector Decline"
- Retail Stocks on Sale: Retail stocks are currently undervalued, presenting a potential opportunity for investors looking for bargains.
- Investment Opportunity: The decline in retail stock prices may attract bargain hunters seeking to capitalize on lower valuations.
See More
Investors Eye Opportunities in Undervalued Stocks
- Sprouts Farmers Market Undervalued: Sprouts Farmers Market stock has plummeted over 60% since its peak in 2024, now trading at less than 12 times the projected earnings of $5.74 per share, significantly below the analyst target of $108.73, indicating a market misunderstanding of its growth potential in the health food sector.
- Progressive Insurance Value: Progressive stock is currently priced at less than 13 times earnings, with a projected dividend yield of nearly 6.7%, and despite slowing revenue growth, the company continues to perform well in the insurance industry, highlighting its investment appeal.
- PayPal's Market Control: PayPal stock is valued at less than eight times expected earnings of $5.34 per share, and despite fierce competition in the digital payment space, it still commands about 40% of the market, demonstrating its strong position in the industry.
- Potential of New CEO: PayPal is set to welcome new CEO Enrique Lores, who is expected to bring fresh ideas and perspectives, potentially revitalizing the company and helping it maintain its competitive edge in a crowded market.
See More
Promethos Capital Fully Exits Sprouts Farmers Market Stake
- Stake Change: Promethos Capital sold its entire holding of 34,935 shares in Sprouts Farmers Market for approximately $3.80 million, indicating a significant decline in confidence as the fund's position value dropped entirely.
- Performance Decline: As of February 13, 2026, Sprouts Farmers Market shares traded at $68.96, reflecting a 60.9% drop over the past year, significantly underperforming the S&P 500 by 73 percentage points, highlighting severe market challenges.
- Portfolio Reallocation: The sale reduced Sprouts Farmers Market's share to 1.02% of Promethos Capital's AUM, with Taiwan Semiconductor Manufacturing now being the largest holding, indicating a strategic shift in the fund's investment focus.
- Future Prospects: Despite Promethos Capital's exit, Sprouts Farmers Market is actively expanding with plans to reach 1,400 locations, and its differentiated product strategy and innovation capabilities may present opportunities for long-term investors.
See More
Promethos Capital Exits Entire Position in Sprouts Farmers Market
- Position Liquidation: On February 13, 2026, Promethos Capital sold its entire holding of 34,935 shares in Sprouts Farmers Market, valued at approximately $3.80 million, indicating a significant reduction in confidence and resulting in a decline in the fund's quarter-end position value.
- Poor Market Performance: As of February 13, 2026, Sprouts Farmers Market shares traded at $68.96, reflecting a 60.9% drop over the past year, significantly underperforming the S&P 500 by 73 percentage points, highlighting a decline in the company's competitive position.
- Portfolio Adjustment: The Sprouts Farmers Market position represented 1.02% of Promethos Capital's AUM, and following the liquidation, the fund's top five holdings shifted to include Taiwan Semiconductor and Novartis, indicating a strategic pivot towards other sectors.
- Future Growth Potential: Despite Promethos Capital's exit, Sprouts Farmers Market is actively expanding, aiming for 1,400 locations in the long term, with 70% of its products being attribute-driven, showcasing its differentiated competitive advantage in the health food market.
See More
Uber Eats Launches AI Shopping Assistant to Compete with Instacart
- AI Shopping Assistant Launch: Uber Eats has introduced the Cart Assistant, an AI tool that can automatically add items from handwritten shopping lists or recipe screenshots to online shopping baskets, displaying prices and promotions, thereby enhancing user shopping experience and customer loyalty.
- Intensified Market Competition: The launch of Cart Assistant intensifies competition between Uber Eats and Instacart, with Instacart's gross transaction value nearing $40 billion annually, while Uber's retail business is projected to reach a $12 billion annual run rate by 2025, highlighting the significant potential in the retail market for both companies.
- Technological Investment Edge: Uber's substantial investment in AI allows it to keep pace with Instacart technologically; while Cart Assistant may not be a game changer, it strengthens Uber's competitive position across its diversified platform, particularly in transportation and food delivery.
- Ongoing AI Applications: Uber is leveraging AI not only in the shopping assistant but also in driver matching, route optimization, and dynamic pricing, and is expected to continue investing in AI to better meet customer needs and drive business growth.
See More
Grocery Sector Faces Challenges and Opportunities
- Low Industry Valuations: Excluding giants like Walmart and Costco, Kroger Company (KR) trades at 12.7x forward earnings estimates, significantly below the S&P 500, indicating a cautious market sentiment reflected in the grocery sector's average valuation of just 11.3x.
- Stagnant Revenue Growth: Over the past five years, revenues at major grocery chains have barely budged, with inflation-adjusted figures showing declines; Kroger's net income margin is projected at only 2.1% for FY 2026, while Albertson's (ACI) is even narrower at 1.4%.
- Emerging Market Opportunities: Sprouts Farmers Market (SFM) is forecasted to achieve approximately 10% revenue growth in FY 2026 with a net income margin of 5.7%, highlighting its competitive edge in the natural and organic food sector against traditional grocers.
- Attractive Options Strategy: Given SFM's recent weak stock performance, investors can sell cash-secured puts to earn about 5% returns; if the stock remains above $65 by expiration, profits are realized, while a drop allows acquisition at a discount, showcasing the appeal of value investing.
See More
"BJ's, Kroger, and 8 Additional Stocks Poised to Gain from Retail Sector Decline"
- Retail Stocks on Sale: Retail stocks are currently undervalued, presenting a potential opportunity for investors looking for bargains.
- Investment Opportunity: The decline in retail stock prices may attract bargain hunters seeking to capitalize on lower valuations.
See More
