Inaugural Week of GTLB Options Trading for April 2026
Put Contract Overview: The $42.50 put contract has a bid of $7.00, allowing investors to buy shares at a cost basis of $35.50 if sold-to-open, offering a 4% discount compared to the current price of $44.24.
Potential Outcomes for Put Contract: There is a 65% chance that the put contract will expire worthless, potentially yielding a 16.47% return on cash commitment or 24.84% annualized.
Call Contract Overview: The $47.50 call contract has a bid of $7.90; if shares are purchased at $44.24 and sold-to-open, it could yield a total return of 25.23% if called away by April 2026.
Risk Assessment for Call Contract: With a 43% chance of expiring worthless, the call contract could provide a 17.86% additional return or 26.93% annualized if it does not get exercised.
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- Nvidia's Investment Value: Nvidia (NVDA) is currently trading at a forward P/E ratio of about 23 times, which is undervalued given its 62% revenue growth last quarter, indicating significant future growth potential amidst ongoing AI infrastructure spending.
- Salesforce's Market Positioning: Salesforce (CRM) has a forward P/S ratio of only 4 times and a forward P/E ratio below 15 times; despite fears of AI replacement, its acquisition of Informatica and launch of Data 360 position it as a leader in AI data management, showcasing substantial growth opportunities.
- GitLab's Growth Potential: GitLab (GTLB) has a forward P/S ratio of just 4.8 times, and despite concerns about AI impacting software developers, it has consistently grown revenue by 25% to 35% and is shifting to a hybrid seat-plus-usage model, indicating its competitiveness in the AI era.
- Market Competition Analysis: While Nvidia faces competition from AI-specific integrated circuits, its chips' versatility and the established code on its CUDA platform allow it to maintain a significant share of AI infrastructure spending, suggesting these stocks are attractive investments in the current market environment.
- Stock Performance Decline: GitLab's share price fell over 10% in 2024 and another 33% in 2025; however, 2026 could be pivotal for the company to prove the bears wrong, indicating market optimism about its future.
- Strong Revenue Growth: The company has consistently achieved revenue growth between 25% and 35% over the past two years, driven by new customer acquisitions and existing customer expansions, with a remarkable 119% dollar-based net retention rate over the past 12 months, highlighting customer stickiness.
- Pricing Model Shift: GitLab is transitioning to a new hybrid seat-plus-usage pricing model aimed at boosting average revenue per user (ARPU), and while investors express concerns over price uncertainty, this strategy is expected to enhance customer loyalty.
- Opportunities from AI: Despite fears that AI may reduce the number of programmers, GitLab is likely to benefit from the trend of vibe-coding, as all code, regardless of the author, must be securely stored and reviewed, ensuring the platform's relevance and security.
- Stock Performance Issues: GitLab has seen its stock price decline over 10% in 2024 and another 33% in 2025, despite achieving consistent revenue growth of 25% to 35% over the past two years, indicating market concerns about its future prospects.
- Strong Customer Retention: The company boasts a 119% dollar-based net retention rate over the past 12 months, primarily driven by seat expansion and upgrades to higher-tier services, reflecting the stickiness of its platform and customer loyalty.
- AI Transformation Opportunities: While there are fears that AI may reduce the number of programmers, GitLab is evolving into an end-to-end software development lifecycle platform that leverages AI agents to assist developers, enhancing its competitive edge in secure code storage.
- Attractive Valuation: With a forward price-to-sales ratio of approximately 5.5 times and a forward price-to-earnings ratio of 24.5 times, GitLab appears to have significant upside potential in light of the opportunities presented by AI, although investors remain cautious about its new pricing model.
- Potential Buyout Candidates: A number of technology companies are being considered for potential buyout offers.
- Investor Opportunities: Investors may benefit financially when these buyout deals are officially announced.
- Quantum Computing Leadership: IonQ's quantum computing systems have achieved a remarkable 99.99% fidelity in two-qubit gates, marking a significant technological breakthrough that enhances the company's competitive edge in the future market.
- Ecosystem Development: IonQ is aggressively acquiring technologies to reduce system size and improve data transmission speed, aiming to build a complete quantum ecosystem that positions it favorably for commercialization.
- AI Agent Opportunity: UiPath's AI agent orchestration platform can manage agents from multiple vendors, leveraging its leadership in robotic process automation to significantly increase market share and drive company growth.
- GitLab's Potential: GitLab's current market cap is less than 5.5 times its projected 2026 sales; despite concerns over AI replacement, its secure platform is expected to benefit from increased software development, leading to continued strong revenue growth.
- Poor Stock Performance: GitLab's shares fell 33% last year due to a combination of slowing revenue growth, high valuation, and declining customer retention, leading investors to adopt a wait-and-see approach regarding its AI strategy, which negatively impacted market confidence.
- Slowing Revenue Growth: Although the company reported a 25% year-over-year revenue increase to $244.4 million in Q3, market expectations for future growth remain pessimistic, particularly with concerns that generative AI may pose a threat rather than an opportunity for the company.
- Significant Valuation Decline: GitLab now trades at a price-to-sales ratio of just 6, a substantial decrease from one or two years ago, indicating market apprehension about its future profitability despite the overall strong performance of tech stocks.
- Increased Competitive Pressure: GitLab faces heightened competition from GitHub, owned by Microsoft, leading investors to question its ability to sustain growth and profitability in the AI era, especially following guidance that fell short of market expectations.











