Selling $230 Strike Puts Offers 13.9% Yield on Keysight Technologies
FTV•Selling December 18 2026 put options on Keysight Technologies at a $230 strike nets roughly $1,060 in premiums, equating to about 13.9% annualized yield when combining 5% interest on reserved cash. If shares close below $230, assigned stock cost falls to approximately $219.40 per share.
1. Options Trade Mechanics
An investor sells a December 18, 2026 put option on Keysight Technologies with a $230 strike price, collecting approximately $1,060 per contract. By setting aside $23,000 in collateral and earning roughly 5% in a money market account, the total effective annualized yield reaches about 13.9%.
2. Trade Outcomes
If Keysight shares remain above $230 through expiration, the put expires worthless and the investor retains the full premium. If shares fall below $230, assignment obligates purchase at $230, but the $1,060 premium lowers the effective entry to about $219.40 per share, representing a 34% discount to current levels.
3. Business Fundamentals
Keysight Technologies posted record quarterly results with orders rising 56% year-over-year, revenue up 31% and earnings per share increasing 69%. Management described it as the company’s strongest quarter ever, underpinning the rationale for willingness to own the shares at a discount.
