November 7th Options Now Available For Ouster (OUST)

Analysis of Ouster Inc. (OUST) options, with the stock at $28.68, highlights two strategies: selling a $28.00 put for a $1.95 premium offers a potential acquisition at $26.05 or a 6.96% (59.06% annualized) return if the option expires worthless (59% probability). Concurrently, a covered call using a $29.00 strike call for a $1.85 premium could yield a 7.57% return by November 7th if assigned, or a 6.45% (54.70% annualized) premium boost if the option expires worthless (45% probability). Notably, implied volatilities for these contracts (111% for put, 106% for call) exceed the 98% trailing 12-month actual volatility.

Analysis

The options market for Ouster Inc. (OUST), currently trading at $28.68, presents opportunities for income generation and strategic stock acquisition, driven by elevated implied volatility. A cash-secured put strategy at the $28.00 strike offers a $1.95 premium, effectively lowering the cost basis to $26.05 if assigned, or yielding a 6.96% return (59.06% annualized) if the option expires worthless, an event with a 59% probability. For existing shareholders, a covered call at the $29.00 strike generates a $1.85 premium, offering a 7.57% total return if the stock is called away or a 6.45% income boost (54.70% annualized) if it expires worthless, which has a 45% chance. Critically, the implied volatility for these options (111% for the put and 106% for the call) is trading at a premium to the stock's trailing twelve-month actual volatility of 98%. This differential suggests that options are currently richly priced, making premium-selling strategies such as those described theoretically more attractive than buying options.

Key Decisions for Investors

• Bullish investors seeking to acquire Ouster Inc. shares could consider selling the $28.00 strike put to either purchase the stock at an effective 9.2% discount to its current price or to collect a high-yield premium of 6.96% if the stock remains above the strike.
• Current shareholders of OUST can generate income by selling the $29.00 strike covered call, capitalizing on the elevated implied volatility to secure a potential 7.57% total return by the November 7th expiration or a 6.45% premium boost if the stock price does not exceed $29.00.
• Given that implied volatility (106-111%) exceeds historical volatility (98%), investors should recognize this indicates market expectations of significant price movement, so while selling options is attractive, one must be prepared for the underlying stock's volatility and the risk of assignment or uncapped upside loss on a covered call.