Investors interested in Copart Inc (CPRT) shares, currently priced at $46.12, might consider selling January 2027 put options with a $37.50 strike price, currently offering a bid of $2.05. This represents a 5.5% return based on the commitment price, equating to a 3.6% annualized rate of return.
If the stock does not fall by 19.1% to trigger the option, the only benefit for the put seller remains the premium collected. Copart’s trailing twelve-month volatility is calculated at 27% based on closing values from the last 250 days, providing context for the risk-reward assessment of this option strategy.
As of mid-afternoon trading on Friday, put volume for S&P 500 components reached 2.83 million contracts, juxtaposed with 3.14 million calls, resulting in a put:call ratio of 0.90, noticeably higher than the long-term median of 0.65.
