Investors exploring options for acquiring shares of GE Vernova Inc (Symbol: GEV) at the current market price of $569.87 might consider selling the January 2027 put at a $350 strike price, which offers a bid of $28.80, translating to an 8.2% return on the $350 commitment and a 5.5% annualized rate of return.
This put strategy limits the potential upside compared to outright stock ownership, as the contract only benefits the seller if the shares decline by 38.5%. In contrast, the $350 strike presents more risk to stock buyers, who would see a significant loss if shares drop to that level.
Recent trading data shows that the put volume among S&P 500 components reached 2.83 million contracts, compared to 3.14 million calls, indicating an unusually high put-to-call ratio of 0.90, suggesting increased bearish sentiment.
