Investors considering American Superconductor Corp. (AMSC) may find selling put options an appealing strategy as shares are priced at $49.20. A notable option is the April 2026 put at the $45 strike, currently bidding at $7.90, presenting a potential 17.6% return or an annualized rate of 26.8% based on the commitment.
The put seller only benefits if the stock price falls below the strike price, resulting in an adjusted cost basis of $37.10 if exercised. The twelve-month volatility for AMSC is calculated at 88%, indicating significant market fluctuations. As of Thursday afternoon, the S&P 500 saw put and call volumes of 957,084 contracts each, creating a put:call ratio of 0.71, exceeding the long-term median of 0.65.
