Ansys Inc. Puts Offer 2.6% Annualized Return for Investors

Ansys Inc. (ANSS) offers an intriguing investment strategy. Selling puts can yield a 2.6% annualized return based on the $280 strike in January 2026, but investors may miss out on major upside potential. This alternative may suit those hesitant about current market prices.

Date: 27-01-2025

AI Rating: 6

Investment Strategy Insight
Investors exploring Ansys Inc. (ANSS) shares can consider selling put options instead of purchasing at the current market price of $346.20. One particular contract, the January 2026 put at a $280 strike, has a bid price of $7.00, offering a strategy for a potential 2.6% annualized return.

However, selling this put limits access to the company's upside, as the put seller only acquires shares if the contract is exercised, which requires a notable decline in the stock's price (19.1% drop to reach the $280 level) to trigger advantageous terms for selling their shares at market price.

The put measure reflects a calculated risk: the compensation for this alternative strategy is the premium from selling the put, representing a modest 2.6% return on the obligation involved. The investors need to weigh the prospect of this yield against potential stock price movements.

Volatility Context
The trading history and volatility factors also play critical roles in this strategy. The trailing twelve months' volatility for Ansys stands at 22%, indicating relative risk levels in the market. Investors may want to analyze these factors along with underlying fundamentals to assess whether the 2.6% annualized return justifies the risk associated with the put sale.

Stocks: ANSS