Exploring Put Options: A Strategy for AST SpaceMobile Investors

Investors looking to buy shares of AST SpaceMobile Inc (Symbol: ASTS) might be wary of the current market price of $25.26 per share. They may want to consider an alternative approach—selling put options. A particularly interesting option is the January 2027 put with a $12.50 strike price, which has a current bid of $3.75. By selling this put, investors can secure a premium that offers a 30% return against the $12.50 commitment, resulting in a 16.5% annualized rate of return, a metric we refer to as the YieldBoost.

Selling a put does not afford investors the same upside potential as owning shares outright. The put seller only acquires shares if the contract is exercised. The counterparty would only exercise the option at the $12.50 strike if it proves more advantageous than the current market price. Unless AST SpaceMobile’s shares drop by 50.5%, triggering the contract, the put seller’s only gain is the premium, which translates to that 16.5% annualized return.

The following chart illustrates the trailing twelve-month trading history for AST SpaceMobile Inc, highlighting the $12.50 strike price in green relative to this history:

This chart, combined with AST SpaceMobile Inc’s historical volatility, can assist investors in assessing whether selling the January 2027 put at the $12.50 strike for a 16.5% annualized return offers a favorable risk-reward ratio. The current trailing twelve-month volatility for AST SpaceMobile Inc, based on the last 250 trading days and today’s price of $25.26, is calculated to be 135%. For additional put option ideas with various expirations, visit the ASTS Stock Options page on StockOptionsChannel.com.

In mid-afternoon trading on Friday, the put volume for S&P 500 components reached 1.33M contracts, with call volume also at 1.33M, resulting in a put:call ratio of 0.70. This is slightly higher than the long-term median put:call ratio of 0.65. In other words, there are more put buyers in the market than expected, considering the usual ratios. This trend indicates heightened interest in protective positions among traders today.

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