Investors interested in Array Technologies Inc (Symbol: ARRY) may consider selling put options instead of buying shares at a market price of $7.12. Notably, the January 2027 put at the $5 strike currently has a bid of $1.10, offering a potential 14.8% annualized return if the option is not exercised. Selling the put provides a premium but does not allow for gains from share price appreciation unless the stock price drops below the strike price.
As of mid-afternoon trading on Monday, the volume of put options among S&P 500 companies reached 1.95 million contracts, while call options totaled 2.44 million, resulting in a put:call ratio of 0.80. This figure indicates a higher number of put buyers compared to typical trading patterns, where the long-term median ratio is 0.65.
The trailing twelve-month volatility for Array Technologies Inc is calculated at 90%, based on the last 249 trading days and the current price. Investors may weigh this data alongside fundamental analysis to assess the risk-reward balance of selling puts in this context.
