Investors eyeing Centrus Energy Corp (LEU) may consider an alternative to the current market price of $250.22 per share by selling put options. One notable contract is the December 2027 put at the $185 strike, currently bid at $63.00, which represents a 34% total return on the commitment, equating to a 17.3% annualized rate of return.
This strategy does not grant investors access to the stock’s upside unless the put is exercised, which would only occur if the shares fall 26.1%. If the contract is executed, the investor’s cost basis would drop to $122.00 per share, after accounting for the $63.00 premium. Centrus Energy Corp’s historical volatility is calculated at 93%, offering context for assessing the risk-reward profile of this put option strategy.
