Investors considering Sable Offshore Corp (SOC) shares, currently priced at $28.32, may want to explore selling put options as an alternative investment strategy. A notable contract is the January 2027 put at a $15 strike, which is trading with a bid of $2.35, yielding a 15.7% return on the $15 commitment, equating to a 10.8% annualized rate of return.
The put seller will only acquire SOC shares if the option is exercised, which would occur if the stock falls by 47.8% or more. The effective cost basis would then be $12.65 per share, factoring in the premium received. Current market volatility for SOC is at 94%, reflecting the stock’s performance over the past year.
On Friday, the put volume among S&P 500 components reached 1.69 million contracts, compared to 2.13 million calls, resulting in a put:call ratio of 0.80—significantly higher than the long-term median of 0.65, indicating increased investor interest in put options.
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