Investors are considering purchasing shares of ServiceNow Inc (Symbol: NOW) at the current market price of $959.22/share. An alternative strategy is to sell puts, such as the June 2027 put at the $660 strike with a bid of $47.20, offering a 7.2% return against the commitment. However, selling a put does not provide access to the stock’s potential upside. The stock’s historical volatility of 41% and fundamental analysis can help evaluate the risk-reward ratio. Put volume among S&P 500 components is high today, with more put buyers than usual compared to call buyers.

(Source: Stock Options Channel)

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