December 2026 Options Now Available For Toast

Stock Options Channel highlights two option strategies on Toast Inc. (TOST): selling the $23 put (bid $1.67) would set an effective purchase basis of $21.33 versus the current $35.70 share price (a ~36% discount) and, with modeled odds of expiring worthless at 85%, would deliver a 7.26% return (6.69% annualized) if it does; alternatively, a covered call at the $45 strike (bid $4.60) on existing shares would cap upside at $45 (≈26% premium) and yield a 38.94% total return if called or a 12.89% premium boost (11.88% annualized) if it expires worthless, with modeled odds of worthless at 51%. Implied volatilities are 70% on the put and 56% on the call versus a trailing 12‑month volatility of 47%, and Stock Options Channel will track and publish changes in these odds and contract histories on its site.

Analysis

The article highlights two option strategies on Toast Inc. (TOST) based on current option quotes and modeled odds. Selling the $23 put (bid $1.67) would set an effective purchase basis of $21.33 versus the current $35.70 share price — a ~36% discount — with Stock Options Channel’s analytical model assigning an 85% probability the contract expires worthless and a YieldBoost of 7.26% (6.69% annualized) if that occurs.

On the call side, buying shares at $35.70 and selling the $45 covered call (bid $4.60) would cap sale proceeds at $45 and produce a 38.94% total return if assigned at the December 2026 expiration; alternatively, if the call expires worthless the collected premium represents a 12.89% boost (11.88% annualized). The model currently places the probability of the covered call expiring worthless at 51%.

Implied volatility is elevated at 70% for the put and 56% for the call versus trailing 12‑month realized volatility of 47%, indicating relatively rich option premiums, especially on downside protection. These modeled odds are time- and volatility-sensitive; investors face assignment risk, upside-capping risk for covered calls, and should account for commissions and the absence of dividends in the article's return calculations, while Stock Options Channel will publish changing odds over time.

Key Decisions for Investors

• Consider selling the $23 put only if willing and sized to own TOST at an effective $21.33 basis; use the 85% modeled expiry probability and 7.26% YieldBoost to size risk and accept assignment scenarios
• If already long TOST, consider selling the $45 December 2026 covered call to harvest a 12.89% premium boost and potentially lock a 38.94% capped return, but accept the 51% modeled chance the option expires worthless and the loss of upside beyond $45
• Monitor implied versus realized volatility (puts 70% vs realized 47%) and the published odds on Stock Options Channel before entering trades, as volatility compression would reduce future premium income and change modeled probabilities
• Manage operational risks by factoring in commissions, potential assignment before expiration, lack of dividend income in quoted returns, and limit position size to preserve flexibility should TOST shares move sharply