Leonardo DRS Options Analysis: $40 Put Contract Yield Boost at 12.99%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 12 2026
0mins
Source: NASDAQ.COM
- Put Option Appeal: The current bid for the $40.00 put option is $1.75, and if an investor sells this contract, they commit to buying the stock at $40.00, effectively lowering their cost basis to $38.25, which is approximately a 3% discount from the current price of $41.23, making it attractive for those interested in DRS shares.
- Yield Analysis: Should the put option expire worthless, it would yield a 4.38% return, or an annualized 12.99%, making this contract an appealing investment choice, particularly in the current market environment.
- Call Option Potential: The $45.00 call option has a current bid of $0.95, and if an investor buys DRS shares at $41.23 and sells this contract, they could achieve an 11.45% total return if the stock is called away at expiration, highlighting the potential profitability of this strategy.
- Risk Assessment: Current analytics suggest a 61% chance that the $40.00 put option will expire worthless, while the $45.00 call option has a 59% chance of the same outcome, indicating that investors should carefully evaluate the balance of risk and reward when selecting options contracts.
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Analyst Views on DRS
Wall Street analysts forecast DRS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DRS is 47.33 USD with a low forecast of 40.00 USD and a high forecast of 54.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
4 Buy
2 Hold
0 Sell
Moderate Buy
Current: 41.300
Low
40.00
Averages
47.33
High
54.00
Current: 41.300
Low
40.00
Averages
47.33
High
54.00
About DRS
Leonardo DRS, Inc. is a provider of advanced defense technology to the United States national security customers and allies around the world. It specializes in the design, development and manufacture of advanced sensing, network computing, force protection, and electric power and propulsion, and other mission-critical technologies. It is a provider of defense products and technologies that are used across land, air, sea, space, and cyber domains. Its segments include Advanced Sensing and Computing (ASC) and Integrated Mission Systems (IMS). The ASC segment designs, develops, and manufactures sensing and network computing technology that enables real-time situational awareness required for operational decision making and execution by its customers. The IMS segment designs, develops, manufactures, and integrates power conversion, control and distribution systems, ship propulsion systems, motors and variable frequency drives, force protection systems, transportation and logistics systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Defense Budget Surge: The 2026 U.S. defense budget reaches $900.6 billion, propelling the electronic warfare market to an expected $20.01 billion, highlighting a critical demand for AI signal processing technologies and creating significant market opportunities for companies like VisionWave Holdings.
- Strategic Transaction: VisionWave has entered into a strategic exchange agreement valued at $7 million with SaverOne, aiming to acquire approximately 51% of the company, which will integrate VisionWave's RF sensing and AI analytics into SaverOne's VRU platform to enhance concealed threat detection capabilities.
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