February 2026 Options Now Available For Sea

Analysis of Sea Ltd (SE) options reveals potential strategies for investors, including selling put options at the $155 strike price, offering a net cost basis of $134.75 if exercised, with a 61% probability of expiring worthless and a potential 19.30% annualized return (YieldBoost). Alternatively, selling covered calls at the $165 strike price against shares purchased at $157.11 could yield an 18.61% total return if called away, or a 20.08% annualized YieldBoost if the contract expires worthless, which has a 45% probability based on current analytical data.

Analysis

Sea Ltd (SE), trading at $157.11 per share, offers investors potential options strategies. Selling the $155.00 strike put contract, with a current bid of $20.25, could enable share acquisition at an effective cost basis of $134.75, a significant discount from the current market price. This strategy has a 61% probability of the option expiring worthless, which would result in the seller retaining the premium, translating to a 13.06% return on the cash commitment, or an annualized YieldBoost of 19.30%. Alternatively, for investors holding or purchasing SE shares, selling the $165.00 strike call option for the February 2026 expiration, with a current bid of $21.35, as a covered call strategy, projects a total return of 18.61% if the stock is called away. There is a 45% probability of this call option expiring worthless, in which case the investor would keep the shares and the premium, representing a 13.59% additional return, or an annualized YieldBoost of 20.08%. The implied volatilities for the put (47%) and call (46%) options are slightly higher than Sea Ltd's trailing twelve-month actual volatility of 44%, indicating that option premiums are currently somewhat elevated, which generally benefits option sellers.

Key Decisions for Investors

• Investors interested in acquiring Sea Ltd shares at a lower price than the current $157.11 could consider selling the $155.00 strike put option, targeting a potential net cost basis of $134.75 if assigned, or aiming for the 19.30% annualized income if the option expires unexercised.
• Shareholders of Sea Ltd, or those initiating a position, who are willing to cap potential upside in exchange for income, might explore selling the February 2026 $165.00 strike covered call, which could yield an 18.61% total return if the stock is called away or a 20.08% annualized return boost if the option expires worthless.
• The observation that implied volatility (46-47%) for SE options currently exceeds its historical volatility (44%) suggests that premiums are relatively rich, potentially making option selling strategies more attractive than buying options at this time.
• Before implementing these options strategies, investors should thoroughly evaluate Sea Ltd's underlying business fundamentals and their own risk tolerance, particularly noting that the covered call strategy limits participation in significant upward price movements beyond the $165.00 strike price.