Interesting PLNT Put And Call Options For May 2026

The article details two options strategies for Planet Fitness (PLNT) stock, currently priced at $99.98, aimed at generating income or achieving a lower cost basis. Selling a $92.50 strike put for a $5.30 premium could result in an effective purchase price of $87.20 if assigned, with a 68% chance of expiring worthless and yielding an 8.75% annualized return. Alternatively, a covered call strategy, involving buying PLNT shares and selling a $105.00 strike call for $7.70, offers a potential 12.72% return if shares are called away by May 2026, or an 11.76% annualized return if the call expires worthless, with a 49% probability.

Analysis

The article outlines two specific, long-dated (May 2026 expiration) options strategies for Planet Fitness (PLNT), which currently trades at $99.98 per share. The first strategy involves selling a cash-secured put at a $92.50 strike price for a $5.30 premium. This approach offers investors interested in acquiring PLNT a method to establish a position at an effective cost basis of $87.20, a significant discount to the current market price, or to generate an 8.75% annualized yield if the option expires worthless, an event with a stated 68% probability. The second strategy is a covered call for existing shareholders, involving the sale of a $105.00 strike call for a $7.70 premium. This could yield a total return of 12.72% if the stock is called away, or an 11.76% annualized income boost if the option expires worthless, which has a 49% probability. A key observation is the implied volatility of the options (34-36%) is elevated relative to the trailing twelve-month historical volatility of 31%, suggesting that option premiums are currently rich, which enhances the appeal of these premium-selling strategies.

Key Decisions for Investors

• Investors bullish on PLNT but seeking a lower entry point could consider selling the $92.50 strike put, which provides a path to acquire shares at an effective price of $87.20 or generate an 8.75% annualized yield on the cash secured.
• Existing PLNT shareholders with a neutral-to-moderately-bullish outlook might find the covered call strategy attractive for generating income, offering an 11.76% annualized yield boost while capping upside at a total return of 12.72% if the stock price exceeds $105.00 by expiration.
• The spread between implied volatility (34-36%) and historical volatility (31%) indicates that options are priced relatively expensively, favoring strategies that involve selling premium, such as the two presented.