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Masimo Corp. (Symbol: MASI) has introduced new January 2026 options this week, including a put contract at a $140.00 strike price, currently bid at $4.10. If sold, this contract obligates the buyer to purchase shares at $140.00, effectively reducing the cost basis to $135.90, representing a 6% discount from the current trading price of $149.01 per share.
The odds of the put contract expiring worthless are approximately 69%, with a potential return of 2.93% on the cash commitment, or 20.17% annualized. Additionally, a call contract at a $150.00 strike price is available, with a current bid of $8.50, which if used in a covered call strategy, could yield a 6.37% return, while the odds of it expiring worthless stand at 47%.
Masimo’s implied volatility for the put contract is 45%, and for the call contract, it is 44%. The actual trailing twelve-month volatility is calculated at 41%, based on the last 249 trading days and the current price of $149.01.
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