Evaluating Put Options for Darling Ingredients Inc Shares

For investors eyeing Darling Ingredients Inc (Ticker: DAR) shares, currently priced at $32.82, exploring strategies such as selling puts may provide an alternative to purchasing shares outright. A notable put contract is the January 2027 put with a $25 strike, which has a current bid of $3.10. By selling this put, investors could secure a premium, translating to a 12.4% return on a $25 commitment, equating to a 6.9% annualized rate of return—referred to as the YieldBoost by Stock Options Channel.

It’s important to understand that selling a put does not grant investors exposure to DAR’s upside potential as stock ownership would. The put seller only acquires shares if the contract is exercised, dependent on whether exercising at the $25 strike produces a better outcome than the prevailing market price. For further context, if Darling Ingredients Inc does not see a decline of 23.6%, and the put is not exercised, the seller’s only benefit is the premium collected, yielding that 6.9% annualized return.

Below is a chart illustrating the trailing twelve-month trading history for Darling Ingredients Inc, highlighting the $25 strike position in green:

The chart, alongside the Stock‘s historical volatility, aids in determining whether selling the January 2027 put at the $25 strike for a 6.9% annualized rate is a favorable risk-reward scenario. Currently, the trailing twelve-month volatility for Darling Ingredients Inc stands at 41%, calculated using the last 251 trading day closing values plus today’s pricing of $32.82. For additional put option strategies across various expiration dates, visit the DAR Stock Options page at StockOptionsChannel.com.

During mid-afternoon trading on Wednesday, the put volume among S&P 500 components reached 837,454 contracts, matching call volume at 837,454, resulting in a put:call ratio of 0.75 for the day. This figure exceeds the long-term median put:call ratio of 0.65, indicating a higher number of put buyers than anticipated in today’s options trading.

Additionally, you can find insights into the top 15 call and put options currently attracting traders’ attention.

Top YieldBoost Puts of the S&P 500 »

Also see:

• Institutional Holders of VCAR
• Institutional Holders of FMIV
• SAVA Shares Outstanding History

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