Exploring Alternative Strategies: Selling Puts for Mettler-Toledo International, Inc.
Take Advantage of Potential Returns Without Paying High Market Prices
Investors eyeing Mettler-Toledo International, Inc. (Symbol: MTD) shares at the current market price of $1313.21/share may consider selling put options as an alternative strategy. Specifically, one notable option is the April 2025 put at the $1080 strike, which is bid at $24.00 at the time of this writing. By collecting this premium, investors could achieve a 2.2% return based on the $1080 commitment, translating to an annualized rate of return of 4.8%—a figure we at Stock Options Channel refer to as the YieldBoost.
However, it’s important to understand that selling a put does not grant investors the same upside potential as owning shares. The seller of a put will only acquire the shares if the option is exercised. Exercise of the put at the $1080 strike would only be favorable for the buyer if it yields a better outcome than selling at the current market price. To clarify, Mettler-Toledo would have to see a decline of 17.8% for the put contract to be exercised, resulting in a cost basis of $1056.00 per share (after accounting for the $24.00 premium). Therefore, the primary benefit to the put seller comes from collecting that premium, which gives a 4.8% annualized return.
Below is a chart depicting Mettler-Toledo International, Inc.’s trailing twelve-month trading history, with the $1080 strike clearly highlighted:
The information in the chart and the stock’s historical volatility can assist investors in determining whether selling the April 2025 put at the $1080 strike for a 4.8% annualized return offers sufficient reward for the associated risks. Based on the last 251 trading days and the current price of $1313.21, Mettler-Toledo’s trailing twelve-month volatility stands at 31%. If you’re seeking additional put option possibilities with varying expirations, explore the MTD Stock Options page on StockOptionsChannel.com.
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Also see:
- FIG Historical Stock Prices
- Funds Holding AUID
- Institutional Holders of WEED
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.