Tyler Technologies Inc. (TYL) Options Strategy: Earn 5.5% Annualized Selling Puts

Tyler Technologies investors can earn a 5.5% annualized return by selling puts with a March 2026 contract at the $510 strike price. The bid for this option is $16.20, representing a 3.2% return. However, selling puts doesn't give access to the stock's upside potential and involves counterparty risk. The put seller collects the premium for the annualized return but only benefits from exercising the contract if it produces a better outcome than selling at the current market price.