Investors Consider Options Strategy for Intuitive Machines

Investors eyeing Intuitive Machines Inc stock are evaluating options. With the current market price at $17.88/share, selling puts could offer a 39.7% annualized return. This investment strategy could be beneficial for those cautious about the stock's price volatility.

Date: 10-01-2025

AI Rating: 6

Analysis of Investment Strategy

The report discusses the option of selling a put for Intuitive Machines Inc (Ticker: LUNR) amid concerns about its current market price. Interested investors may sell a June put at the $12 strike for a bid of $2.10, which represents a potential 39.7% annualized rate of return. However, investors must note that selling a put does not allow for participation in the upside potential of the stock unless the shares decline significantly enough for the option to be exercised.

The report highlights that the stock must fall 32.9% for the put seller to have shares at a cost basis of $9.90, which indicates specified risks. The current market price, set at $17.88, is crucial as it reflects significant distance from the $12 strike, questioning the potential for such a price drop.

Furthermore, the historical volatility of Intuitive Machines Inc is noted at 127%, indicating that the stock price may be unpredictable. This high volatility can influence investor sentiment and willingness to engage in selling puts, as it raises the stakes in terms of potential losses.

Stocks: LUNR