Exploring Put Options for Jabil Inc (JBL) Stock Investments

Investors looking to acquire shares of Jabil Inc (Symbol: JBL) might hesitate to pay the current market price of $134.14 per share. However, an alternative strategy worth considering is selling put options. One notable option is the January 2026 put contract with a $110 strike price. At present, this contract has a bid of $8.30, offering a 7.5% return based on the $110 commitment, translating to a 10% annualized return. This concept is sometimes referred to as YieldBoost by Stock Options Channel.

It is important to note that selling puts does not provide the same upside potential as owning shares. The seller only gains ownership of shares if the contract is exercised. The counterparty to the contract will only benefit if exercising the put option at the $110 strike price yields a better outcome than selling at the market price. Without a decline of 17.9% in Jabil Inc shares, leading to the contract being exercised and a cost basis of $101.70 per share (after accounting for the $8.30 premium), the primary reward for the put seller remains the premium collected, resulting in a 10% annualized return.

Furthermore, the 10% annualized return from the put option exceeds the 0.2% annualized dividend yield currently offered by Jabil Inc by 9.8%. A direct stock purchase for dividend collection carries greater risk as the stock would need to decrease by 17.9% to hit the $110 strike price.

When discussing dividends, it’s crucial to recognize that they can fluctuate based on company profitability. Investors should analyze Jabil Inc’s dividend history, as shown in the chart below, to assess the likelihood of continued dividends, justifying the 0.2% annualized dividend yield expectation.

The chart below indicates the trading history for Jabil Inc over the trailing twelve months, highlighting the relative position of the $110 strike price:

This historical trading data and Jabil’s volatility can serve as useful tools, alongside fundamental analysis, when evaluating whether selling the January 2026 put at a $110 strike price provides adequate rewards for the risks involved. Our calculations suggest that Jabil Inc’s trailing twelve-month volatility, based on the last 251 trading days and the current price of $134.14, stands at 41%. For additional put option contract strategies with various expirations, refer to the JBL Stock Options page on StockOptionsChannel.com.

During mid-afternoon trading on Wednesday, the put volume for S&P 500 components reached 1.15 million contracts, while call volume was 1.43 million, resulting in a put-call ratio of 0.80. This level indicates a higher-than-usual interest in put options relative to calls, compared to a long-term median put-call ratio of 0.65. Traders are notably inclined towards buying puts today as opposed to calls.

Discover the top YieldBoost puts from stocks involved in buybacks »

Additionally, see:

• FOSL Historical Stock Prices
• RWAY Market Cap History
• LEN RSI

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