Investors considering an alternative strategy for Quanta Services, Inc. (Symbol: PWR) are evaluating selling put options as shares trade at $402.06. A notable option is the January 2027 put with a $330 strike price, currently bid at $24.70. This offers a potential 7.5% return based on the commitment, equating to a 5% annualized rate of return.
If Quanta Services’ stock does not fall 18.4% to the $330 strike, the put seller only benefits from the premium collected, which exceeds the company’s current 0.1% annualized dividend yield by 4.9%. The recent put volume among S&P 500 components averages 2.83M contracts, indicating higher-than-normal interest in puts compared to calls, with a put:call ratio of 0.90.
Quanta’s trailing twelve-month volatility is calculated at 41%. Investors are advised to consider market conditions, including volatility and dividend predictions, when evaluating the merits of this strategy.
