How to Get Paid to Buy ROST at a Steep Discount

May 22nd, 2026 by Trefis Team
ROST: Ross Stores logo
ROST
Ross Stores

At about $217.19 a share, Ross Stores (ROST) is trading about 5.1% below its 52W high.

Do you think ROST stock is a good long-term bet at current levels? What about at a 30% discount at about $150 per share? If you think that is a steal, and have some cash ready to go, here is a trade.

8.1% annualized yield at 30% margin of safety, by selling Put Options.

  • Sell a long-dated Put option expiring 3/19/2027, with a strike price of $150
  • Collect roughly $380 in premium per contract (each contract represents 100 shares)
  • That’s about 3.1% annualized yield on the $15,000 you’re setting aside for the possibility of buying the stock
  • This cash parked in a savings or money market account will earn an extra 5.0%, taking total yield to 8.1%
  • And you give yourself a chance to buy ROST stock at deep discounted price of $150
Trefis: ROST Stock Insights

Possible Trade Outcomes: You Win Either Way

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Stock Price Outcome What It Means For You
 
ROST stays above $150 You keep the full $380 premium – 2.5% extra income over the next 302 days on cash that might otherwise earn you 5.0% or less. You never buy the stock and simply walk away with the cash.
 
ROST closes below $150 You’ll be obligated to buy 100 shares at $150. But thanks to $380 premium, your effective cost basis is just $146.2 per share – a roughly 33% discount from current level.
 

But to hold this trade with conviction, you want to better under what’s going well for ROST stock and how low it has fallen in the past.

Complementing Your Active Trades

Executing a cash-secured put on ROST is a highly efficient way to engineer yield and optimize your entry point. It is a sophisticated play for active investors. But sustainable wealth building also requires a passive, structured engine.

For investors looking to complement their active trades with a hands-off compounding vehicle, the Trefis High Quality (HQ) Portfolio is the solution. It is engineered to capture market upside across 30 high-conviction stocks, and has delivered over 105% in cumulative return since inception.