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Riot Platforms Options Trading Insights and Strategies

Investors in Riot Platforms Inc (RIOT) are exploring new options contracts. As March 28 contracts roll out, strategies like selling puts and covered calls could offer attractive returns. Options trading insights may impact investors' perception of RIOT stocks.

Date: 
AI Rating:   6

Options Trading Activity
Recent options trading activity for Riot Platforms Inc (RIOT) shows a focus on two particular contracts: a put at $11.00 and a call at $12.50. These contracts are evaluating potential investment strategies based on the current stock price of $11.77.

Put Contract Insights
The put contract at the $11.00 strike price has a bid of $1.09. Investors selling this put are committing to buy shares at $11.00 while collecting a premium of $1.09, effectively lowering their cost basis to $9.91. Considering the strike price is approximately 7% below the current share price, this strategy offers a risk-managed way for investors to acquire shares.

Risk Factors
The report indicates a 65% chance that this contract may expire worthless, presenting both risk and an attractive yield potential of 9.91% on the cash commitment, or an impressive 72.40% annualized return if executed wisely.

Call Contract Analysis
On the call side, the $12.50 strike has a bid of $1.33. Investors purchasing shares at $11.77 and selling this call stand to gain a total potential return of 17.50% if the stock price meets the strike. However, this comes with the downside of potentially leaving gains on the table if the stock significantly increases.

Implied Volatility Insights
The implied volatility for puts at 92% and calls at 96% indicates heightened expectations of price fluctuations. The trailing twelve-month volatility stands at 92%, confirming the active trading conditions that could influence stock price movements.

This report highlights the relevance of option trading strategies in the context of RIOT stock investments, allowing investors to potentially enhance returns while managing risks carefully.

Stocks:  RIOT