First Week of February 2026 Options Trading For Ouster

The article outlines attractive options strategies for Ouster Inc. (OUST), presenting both a cash-secured put and a covered call. Selling a $24.00 strike put offers a potential 25% return (44.29% annualized) if it expires worthless, or an effective $18.00 cost basis if assigned, while a covered call using a $27.00 strike could yield a 34.75% total return if the stock is called away. These strategies leverage OUST's current price of $25.38 and high implied volatility (around 100%) to generate significant yield or acquire shares at a discount, with probabilities of various outcomes detailed.

Analysis

The analysis focuses on two distinct options strategies for Ouster Inc. (OUST) that leverage the stock's exceptionally high volatility. Both implied volatility (101-102%) and trailing twelve-month historical volatility (100%) are elevated, creating an environment ripe for premium-selling strategies. The first strategy, selling a cash-secured put with a $24.00 strike, presents a dual-benefit scenario for investors interested in the stock. It either facilitates the acquisition of shares at an effective cost basis of $18.00, a material discount to the current price of $25.38, or generates a 25.00% return on cash (44.29% annualized) if the option expires worthless, an event with a stated 69% probability. The second strategy, a covered call for existing shareholders, involves selling a $27.00 strike call to generate a $7.20 premium. This could result in a 34.75% total return if the stock is called away at the February 2026 expiration, or if it expires worthless (a 36% probability), it provides a 28.37% yield boost (50.25% annualized) while allowing the investor to retain their shares. These strategies are presented as technical tools for yield enhancement or discounted entry, independent of the company's fundamental business outlook.

Key Decisions for Investors

• For investors bullish on OUST and aiming to build a position, selling the $24.00 strike put offers a compelling method to either acquire shares at an effective cost basis of $18.00 or generate a significant yield of 44.29% annualized.
• Current OUST shareholders should consider the covered call strategy at the $27.00 strike to generate substantial income, but must be comfortable capping their upside potential in exchange for a potential 34.75% total return if the stock is called away.
• Given that the attractive returns are a direct function of OUST's ~100% volatility, investors must recognize that a decline in volatility would diminish the appeal of these strategies and should supplement this technical view with their own fundamental analysis of the company.