Exploring Put Options for Grid Dynamics Holdings: A Strategic Alternative

Investors eyeing Grid Dynamics Holdings Inc (Symbol: GDYN) shares, currently priced at $13.17 each, may consider selling puts as an alternative strategy to direct stock purchases. One particularly noteworthy contract is the September put with a $10 strike, which boasts a bid of 60 cents at this moment. This premium offers a 6% return relative to the $10 commitment, translating to a 13.6% annualized rate of return, a term we refer to as the YieldBoost at Stock Options Channel.

Understanding the Risks of Selling Puts

Selling a put may not provide the upside potential that owning shares offers. An investor only acquires shares if the contract is exercised. The other party would exercise at the $10 strike only if it results in a better outcome than selling the shares at the current market price. If Grid Dynamics Holdings does not see its shares fall by 24.1%, resulting in a cost basis of $9.40 per share before any broker commissions (accounting for the 60-cent premium), the put seller’s only upside remains the collected premium at an annualized rate of 13.6%.

Chart Analysis of GDYN’s Price Movements

The chart below reflects the trailing twelve-month trading history for Grid Dynamics Holdings Inc, emphasizing where the $10 strike aligns within that historical context:

This price chart, combined with the Stock’s historical volatility, aids in assessing whether the September put at the $10 strike, yielding a 13.6% annualized rate, presents a favorable risk-reward scenario. The trailing twelve-month volatility for Grid Dynamics Holdings, considering the last 251 trading days alongside today’s price of $13.17, stands at 46%. For other put option contract ideas across various expirations, refer to the GDYN Stock Options page on StockOptionsChannel.com.

Current Options Market Insights

In the afternoon trading session on Friday, the put volume among S&P 500 components reached 1.12 million contracts, matching call volume of 1.12 million, leading to a put-to-call ratio of 0.74. This figure surpasses the long-term median put-to-call ratio of 0.65, indicating an increase in put activity compared to expectations based on call buying trends. Today’s options trading shows a higher number of put buyers than previously anticipated.

Top YieldBoost Puts of the S&P 500 »

also see:

• IM Price Target
• Institutional Holders of BOND
• Institutional Holders of DHAC

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