Investors looking to purchase shares of Unity Software Inc (Symbol: U) at the current market price of $24.11 may consider selling put options as an alternative strategy. One notable option is the January 2027 put at a $15 strike priced at $1.76, offering an 11.7% return against the $15 commitment, equating to an annualized rate of 12.4%.
Should Unity’s share price decline by 38.5% and the put be exercised, the cost basis would be $13.24 per share after accounting for the premium. The calculation of Unity’s trailing twelve-month volatility stands at 78%, factoring in the last 251 trading days and the current price. Investors are advised to assess whether the potential 12.4% annualized return justifies the associated risks.
