Keysight Technologies Put Sale Offers 13.9% Yield on $230 Strike
MKSI•By selling December 18, 2026 $230-strike puts on Keysight Technologies, investors collect $1,060 premiums per 100 shares, an 8.9% annualized return on $23,000 collateral, rising to 13.9% when parked at 5% interest. If assigned at $230, cost net of premium is $219.40, roughly 34% below current levels.
1. Option Trade Mechanics
Investors can sell December 18, 2026 $230-strike put options on Keysight Technologies, collecting approximately $1,060 per contract. Each contract requires setting aside $23,000 in cash as collateral, which remains untouched regardless of whether shares are eventually purchased.
2. Yield Enhancement Strategy
The premium translates to an 8.9% annualized return on the $23,000 collateral over 192 days, while parking that cash in a 5% interest account boosts the effective annual yield to about 13.9%.
3. Assignment and Cost Basis Implications
If Keysight closes below the $230 strike at expiration, the put seller is assigned 100 shares at $230 each, reducing the effective purchase price to $219.40 per share after accounting for the premium—approximately a 34% discount to current levels.
