An analysis of Rigetti Computing Inc (RGTI) highlights the potential for a 10.6% annualized return from selling a January 2028 put option with an $8 strike price. This strategy, evaluated against RGTI's current price of $31.75 and 178% trailing twelve-month volatility, offers premium income unless the stock falls 74.5% to the strike, at which point the put seller would acquire shares at an effective cost basis of $6.14.
The article details a specific options strategy for Rigetti Computing Inc (RGTI), focusing on selling a January 2028 put option with an $8 strike price. This strategy offers an attractive 10.6% annualized rate of return through premium collection, with RGTI's current share price standing at $31.75. Should the put option be exercised, the seller would acquire RGTI shares at an effective cost basis of $6.14 per share, which implies a significant 74.5% decline from the current market price. This substantial downside buffer is particularly relevant given Rigetti's high trailing twelve-month volatility, recorded at 178%. The strategy primarily generates income from premium, offering no direct participation in RGTI's potential upside beyond the premium collected. Investors must carefully evaluate the risk-reward profile, considering the high historical volatility and the potential obligation to acquire shares at the $6.14 effective price, which necessitates complementary fundamental analysis.
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