Alternative Strategies for Keysight Technologies Investors: Selling Puts Explained
Investors eyeing Keysight Technologies Inc (Symbol: KEYS) stock at the current market price of $154.53 per share may want to explore alternative strategies, particularly selling put options. One intriguing option is the June 2025 put at the $120 strike price, currently offering a bid of $3.40. Selling this put allows investors to earn a 2.8% return based on the $120 commitment, translating to an annualized return of 4.5%. This yield can be attractive for cautious investors.
Unlike buying shares, selling a put does not grant access to potential price gains for KEYS. The put seller only acquires shares if the option is exercised. The buyer will only choose to exercise this option if it offers a better outcome than selling at the current market price. If Keysight’s stock price drops by 22.4%, thus triggering the put, the seller would end up with a cost basis of $116.60 per share—after accounting for the $3.40 premium received—before broker commissions. Therefore, the main benefit for the put seller is collecting the premium, which equates to that 4.5% annualized return.
The following chart illustrates the trading history of Keysight Technologies Inc over the trailing twelve months, with the $120 strike price indicated in green:
This chart, alongside an analysis of the stock’s historical volatility, provides a comprehensive view for investors assessing whether the 4.5% annualized return from selling the June 2025 put option is a worthwhile reward for the associated risks. Currently, the trailing twelve-month volatility for Keysight Technologies Inc, calculated from the last 250 trading day closing values and today’s price of $154.53, stands at 30%. For more put options with varying expirations, you can visit the KEYS Stock Options page on StockOptionsChannel.com.
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Also see:
- BLUW market cap history
- OPHT Insider Buying
- SNCY Average Annual Return
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
