Exploring Alternative Investment Strategies
Delving into the realm of Remitly Global Inc (REL), investors who are apprehensive about procuring shares at its current market value of $20.75/share, might find solace in considering the selling of put options as a viable alternative.
Unlocking Potential with Put Options
Particularly intriguing is the December put at the $15 strike, currently boasting a bid of 95 cents. This bid equates to a 6.3% return against the $15 commitment, or an enticing 8.9% annualized rate of return.
Understanding the Dynamics
While selling a put doesn’t bestow investors with access to REL’s upward potential as share ownership does, it lays the groundwork for potential share ownership if the contract is exercised. The upside for the put seller materializes only if the shares plummet by 27.7%, and the contract is indeed executed.
Analyzing Historical Trends and Volatility
Examining a chart depicting the trailing twelve-month trading history of Remitly Global Inc offers insight on the $15 strike’s positioning in relation to the historical data. Combine this with the stock’s historical volatility to gauge the risk-reward ratio for selling the December put at the $15 strike for an alluring 8.9% annualized rate of return.
[Link to REL Stock Options page of StockOptionsChannel.com]
Also see:
– Top Stocks Held By Andreas Halvorsen
– MGI Price Target
– AVUV Videos
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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