Investors interested in Hologic Inc (Symbol: HOLX) shares, currently priced at $67.26, may consider selling puts as an alternative strategy. The December put with a $62.50 strike has a bid of $1.40, offering a 2.2% return against the $62.50 commitment and a 7% annualized rate of return.
If Hologic’s stock does not fall 7% and the put is not exercised, the seller’s only potential gain comes from the premium. The trailing twelve-month volatility for Hologic is 28%, providing context for assessing the risk-reward ratio of this strategy.
