Investors eyeing EMCOR Group, Inc. (Symbol: EME) are considering put options as an alternative strategy to avoid the current market price of $622.06 per share. A notable option is the December 2026 put at the $520 strike, which has a bid of $41.50, translating to an 8.2% annualized rate of return against the $520 commitment.
The put contract carries risk as it only yields shares if the stock declines by 16.5% or more. Should that occur, the cost basis would be $478.50 per share after accounting for the premium, which exceeds EMCOR’s current dividend yield of 0.2%. Additionally, the historical volatility of EMCOR shares stands at 46%, providing potential investors with a measure of risk relative to the anticipated returns.
