Exploring Put Options as a Strategy for Astera Labs Inc. Stock

Investors eyeing a purchase of Astera Labs Inc (Symbol: ALAB) at its current market price of $64.98 per share may find selling puts an appealing alternative strategy. Specifically, a noteworthy option contract is the January 2027 put with a $32.50 strike price, which features a bid of $5.60 at present. Collecting this premium reflects a 17.2% return against the $32.50 commitment, equating to a 9.2% annualized rate of return—referred to as the YieldBoost at Stock Options Channel.

It is important to note that selling a put option does not afford an investor the same upside potential as owning shares. A put seller only acquires shares if the contract is exercised, occurring when the stock price falls below the strike price. For the seller to benefit from exercising the option at $32.50, it would be more advantageous than selling at the current market price. In essence, unless Astera Labs Inc experiences a decline of over 50.1%, leading to the contract’s exercise (effectively costing $26.90 per share after accounting for the $5.60 premium), the only advantage for the put seller is the earned premium that delivers a 9.2% annual return.

Below is a chart that depicts the trailing twelve-month trading history for Astera Labs Inc. The highlighted area in green indicates the position of the $32.50 strike price within that historical context:

This chart and the historical volatility of ALAB can assist in analyzing whether selling the January 2027 put at the $32.50 strike for a 9.2% annualized return offers an acceptable risk-reward balance. The calculated trailing twelve-month volatility for Astera Labs Inc, incorporating the last 240 trading day closing values and the current price of $64.98, is 89%. For additional put options at various expiration dates, please visit the ALAB Stock Options page on StockOptionsChannel.com.

During mid-afternoon trading on Thursday, the S&P 500 components recorded a put volume of 999,983 contracts alongside an equal call volume of 999,983. This resulted in a put:call ratio of 0.71. This figure is notably higher than the long-term median put:call ratio of 0.65, indicating an abnormal influx of put buyers relative to historical averages.

For insights into the 15 most-discussed call and put options in the current market, visit here.

Top YieldBoost Puts of the S&P 500 »

Also see:

• ETFs Holding ARW
• MOS market cap history
• GII market cap history

The views and opinions expressed herein represent those of the author and do not necessarily reflect the views of Nasdaq, Inc.