Investors considering purchases of Impinj Inc (Symbol: PI) at the current market price of $157.81 per share may find value in selling put options, specifically the December put at the $110 strike, with a bid of $14.00. This strategy can yield a 12.7% return based on the $110 commitment, equating to a 14.7% annualized rate of return.
The option to sell a put contract allows investors to collect premium income, but it does not provide direct market upside. The put seller will only acquire shares if the contract is exercised, which may occur if the stock price declines by 30%, resulting in an effective cost basis of $96.00 per share, after premiums. Impinj Inc has a trailing twelve-month volatility of 76%, indicating significant price fluctuations that should be considered alongside this trading strategy.
