Magnite Inc. Offers Attractive Put Option for Investors

Investors eyeing shares of Magnite Inc. (Symbol: MGNI) at the current market price of $10.74 may find selling puts to be a strategic alternative. A noteworthy option is the January 2026 put at the $10 strike, which has a bid price of $2.15 as of now. By selling this put, investors secure a premium that translates to a 21.5% return based on the $10 commitment, or an impressive annualized rate of 29.1%, a concept we refer to as YieldBoost at Stock Options Channel.

However, it’s important to understand that selling a put does not provide the same upside potential as owning shares directly. The put seller will only acquire shares if the option is exercised. For the contract to be exercised at the $10 strike, the market price must dip below this level. This means that unless Magnite’s shares decrease by 6.4%, ending up at a cost basis of $7.85 per share (after accounting for the $2.15 premium), the primary benefit for the put seller is the premium received for a 29.1% annualized return.

The accompanying chart illustrates the trailing twelve-month trading history of Magnite Inc., highlighting the $10 strike position in green against that backdrop.

Analyzing the chart alongside Magnite’s historical volatility can assist investors in determining if selling the January 2026 put at the $10 strike offers an adequate risk-reward balance. Currently, the trailing twelve-month volatility for Magnite, calculated from the last 249 trading days and today’s price of $10.74, stands at 64%. For additional put option opportunities across various expirations, consult the MGNI Stock Options page at StockOptionsChannel.com.

On Monday, mid-afternoon trading revealed that put volume across S&P 500 components reached 961,483 contracts, while call volume totaled 1.13 million, resulting in a put-to-call ratio of 0.85. This levels indicates unusually high put activity when compared to the long-term median ratio of 0.65, suggesting that more investors are leaning towards put options today than usual. To explore which 15 call and put options are generating discussions in the trading community, check here.

Top YieldBoost Puts of the S&P 500 »

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