Rush Street Interactive: Exploring Put Options as a Strategy

Investors interested in acquiring shares of Rush Street Interactive Inc (Symbol: RSI) may find the current market price of $11.73 per share somewhat prohibitive. Considering alternative strategies like selling puts could be a more attractive option. One notable contract is the July 2026 put with a $10 strike price, which currently has a bid of $1.65. Selling this put allows investors to collect a premium that equates to a 16.5% return on the $10 commitment, translating to a 13.2% annualized rate of return.

It’s important to understand that selling a put does not grant ownership or the potential for upside gains in the same manner as holding shares directly. The put seller will only own shares if the contract is exercised. The counterparty would choose to exercise the put only if it provides a better outcome than selling at the current market price. If Rush Street Interactive’s shares experience a decline of 15.2%, reaching a cost basis of $8.35 per share (after accounting for the $1.65 premium), the option could be exercised. However, for most scenarios, the primary benefit for the put seller would simply be the premium collected, yielding a 13.2% annualized return without additional risk of ownership.

A chart detailing the trailing twelve-month trading history of Rush Street Interactive Inc is included below. It highlights the $10 strike price in green, providing context for evaluating the put option’s attractiveness relative to past performance:

The aforementioned chart, along with Rush Street Interactive’s historical volatility, should be assessed alongside fundamental analysis. This will help determine if the 13.2% annualized return from selling the July 2026 put at the $10 strike signifies a solid risk-reward proposition. Our calculations indicate a trailing twelve-month volatility of 55% for Rush Street Interactive Inc, using the latest closing values of the previous 251 trading days in addition to the current price of $11.73. For other put option alternatives across various expirations, visit the RSI Stock Options page at StockOptionsChannel.com.

On Wednesday afternoon, put volume among S&P 500 constituents reached 1.15 million contracts, while call volume was 1.43 million, resulting in a put:call ratio of 0.80 for the day. This figure is notable, as it exceeds the long-term median put:call ratio of 0.65. This indicates an increased presence of put buyers in the market compared to the average ratio of call buyers.
For a deeper analysis of the day’s top trading options, consider examining which 15 calls and puts are generating discussions among traders.

Top YieldBoost Puts of the S&P 500 »

also see:

• High-Yield Canadian Real Estate Stocks
• RFP Options Chain
• NFG market cap history

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