Marketaxess Holdings Inc (Symbol: MKTX) investors exploring alternatives to purchasing shares at the current market price of $191.85/share may consider selling put options. Noteworthy is the February 2026 put at the $170 strike, offering a bid of $5.70, which translates to a 3.4% return on the commitment or a 6.8% annualized rate of return.
Should Marketaxess shares decline by 11.7% to trigger this contract’s exercise, the effective cost basis would be $164.30 per share. This strategy yields a higher annualized return compared to the current 1.6% annualized dividend yield. The company’s stock volatility reflects a trailing twelve-month rate of 28%, which can aid in determining the associated risks of this strategy.
Investors should remain cautious, as dividends can fluctuate based on profitability. Therefore, analyzing Marketaxess’s dividend history is essential for assessing the viability of the expected yields.
