NextDecade Corp: Enhancing Returns Through Put Selling Strategies

Investors eyeing NextDecade Corp (Symbol: NEXT) may find the current market price of $7.29 per share a bit too steep. To navigate this, they could consider selling put options as a strategic alternative. One noteworthy put contract is the January 2027 put with a $5 strike price, currently bidding at 80 cents. Collecting this bid as a premium offers a potential return of 16% based on the $5 commitment, translating to an annualized rate of return of 8.6%—a concept we refer to as YieldBoost at Stock Options Channel.

While selling a put option provides potential income, it lacks the upside potential associated with owning shares directly. A put seller will only acquire the shares if the contract gets exercised, and that occurs only if it proves more advantageous than selling at market price. The only benefit to the seller comes from the premium collected for the 8.6% annualized return unless NextDecade Corp shares drop by 31.9%. This drop would lead to an effective cost basis of $4.20 per share—calculated by deducting the 80-cent premium from the $5 strike price—before accounting for broker commissions.

Below is a chart detailing the trailing twelve months of trading history for NextDecade Corp, highlighting the position of the $5 strike against this backdrop:

This chart, combined with NextDecade Corp’s historical volatility, serves as a useful tool for assessing whether selling the January 2027 put at the $5 strike for the 8.6% annualized return offers a favorable risk-reward scenario. The trailing twelve-month volatility for NextDecade Corp, based on the last 250 trading day closing values alongside the current price of $7.29, is calculated at 63%. For additional put option strategies with various expiration dates, visit the NEXT Stock Options page at StockOptionsChannel.com.

Top YieldBoost Puts of the S&P 500 »

also see:

• Top Dividend Stocks YTD
• EWU Split History
• ETFs Holding QCRH

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