Interesting TOST Put And Call Options For September 2026

This analysis details specific options strategies for Toast Inc. (TOST), presenting opportunities for investors to generate income or acquire shares at a discount. It outlines a cash-secured put strategy at the $35.00 strike, offering a 13.19% annualized return if the option expires worthless (64% probability) or an effective acquisition cost of $30.70. Concurrently, a covered call strategy at the $37.00 strike is discussed, projecting a 19.38% total return if shares are called away by September 2026, or a 16.45% annualized return if the call expires worthless (40% probability), providing actionable insights into yield enhancement for TOST positions.

Analysis

The article details two distinct options strategies for Toast Inc. (TOST) shares, currently trading at $35.56, aimed at either discounted acquisition or yield enhancement. These strategies leverage out-of-the-money put and call contracts to generate premium income or define specific entry/exit points for the underlying stock.

A cash-secured put strategy at the $35.00 strike, with a bid of $4.30, offers an effective acquisition cost of $30.70 for investors willing to purchase TOST shares. This contract, approximately 2% out-of-the-money, has a 64% probability of expiring worthless, yielding a 13.19% annualized return on the cash commitment.

Conversely, a covered call strategy utilizing the $37.00 strike, with a $5.45 bid, targets a 19.38% total return if shares are called away by September 2026. If this call, which is about 4% out-of-the-money, expires worthless (40% probability), the premium collected represents a 16.45% annualized yield boost.

The implied volatility for these options ranges from 50% to 51%, notably above TOST's actual trailing twelve-month volatility of 47%. This higher implied volatility suggests options premiums may be elevated, potentially enhancing the attractiveness of these selling strategies.

Key Decisions for Investors

• Investors interested in acquiring TOST shares at a discount should consider the $35.00 strike cash-secured put, which offers a potential effective entry price of $30.70 or a 13.19% annualized return if not assigned.
• For current TOST shareholders seeking to enhance yield, the $37.00 strike covered call presents an opportunity for a 16.45% annualized return if the option expires worthless, or a 19.38% total return if shares are called away by September 2026.
• Given the implied volatility (50-51%) exceeding historical volatility (47%), investors employing these selling strategies may benefit from potentially richer premiums, but should be mindful of the underlying stock's price movements relative to the strike prices.