Exploring Alternative Strategies With Qorvo Inc
Investors pondering the acquisition of Qorvo Inc (Symbol: QRVO) shares may find themselves hesitating at the current market price of $115.54/share. In such a scenario, engaging in selling puts emerges as a compelling alternative strategy. One intriguing put contract deserving consideration is the January 2026 put at the $90 strike, holding a bid of $6.00 at the time of composing this narrative. Garnering this bid as the premium signifies a 6.7% return against the $90 commitment, or a 3.6% annualized rate of return – christened by us as the YieldBoost.
Understanding the Dynamics of Selling Puts
Selling a put does not bestow upon an investor the potential upside of QRVO’s growth as owning shares would. The put seller only acquires shares if the contract is executed. The counterparty, in turn, gains from exercising at the $90 strike only if it proves more advantageous than selling at the prevailing market price. In essence, unless Qorvo Inc encounters a 22.2% dip leading to contract execution (resulting in a cost basis of $84.00 per share after deducting the $6.00 from $90), the sole benefit for the put seller lies in collecting the premium for the 3.6% annualized rate of return.
Contemplating the trailing twelve-month trading history of Qorvo Inc via the chart below, we elucidate the position of the $90 strike with respect to the historical performance:
The chart, coupled with the stock’s historical volatility, serves as a valuable compass when coupled with fundamental analysis in determining whether trading the January 2026 put at the $90 strike for a 3.6% annualized rate of return offers a commendable risk-reward ratio. Our calculations unveil a trailing twelve-month volatility of 29% for Qorvo Inc (based on the last 251 trading day closing values along with today’s $115.54 price).
Explore Other Opportunities
For a plethora of other put options contract recommendations across different expirations, peruse the QRVO Stock Options page on StockOptionsChannel.com.
