Domino’s Pizza Inc. stock (DPZ) is currently over 14% below the target price of $498. Selling short out-of-the-money put options is a profitable strategy. The $390 strike price put expiring Dec. 19 yielded 1.667%. Today, DPZ stock is at $435.31, making the put premium only 18 cents. Analysts project a potential market value increase of 13.47%.

Shorting DPZ put options provides a potentially lower buy-in point. For example, the Jan. 16, 2026 expiry $420 strike price put offers a 1.44% yield. An investor can enter an order to “Sell to Open” 1 put contract at $420 with a breakeven point of $413.95, providing good downside protection. Expected returns can reach +19.3% upside.

Over the past 3 months, shorting DPZ puts could yield $18.60 per contract, with an ROI of over 4.6%. This strategy has outperformed buying shares directly, offering attractive potential returns. Shorting out-of-the-money puts on DPZ stock remains an appealing approach for investors.

Read more at Barchart: Domino’s Pizza Could Still Be Cheap Here and Shorting OTM Puts Works