New Trading Opportunities Emerge for Avidity Biosciences Options
Investors Eye June 2025 Contracts for Possible Gains
Investors in Avidity Biosciences Inc (Symbol: RNA) have exciting new options available this week for June 2025 expiration. A significant factor in determining option prices is time value. With 241 days until expiration, these newly traded contracts may allow sellers of puts or calls to collect a higher premium compared to contracts expiring sooner. At Stock Options Channel, our YieldBoost formula has analyzed the RNA options chain and identified one put and one call contract worth noting.
The put contract at the $45.00 strike price currently has a bid of $9.00. If an investor sells this put contract, they agree to buy the stock at $45.00 while also collecting the premium, making the effective purchase price $36.00 per share (excluding broker fees). For someone already interested in acquiring shares of RNA, this approach could be more appealing than the current price of $47.64 per share.
Given that the $45.00 strike sits around a 6% discount to the stock’s current price (indicating it is out-of-the-money), there is a possibility that the put option may expire worthless. Present analysis indicates a 66% chance of this outcome. Stock Options Channel will keep an eye on these odds, updating a chart on our website that tracks these figures. If the contract does expire worthless, the premium would mean a 20.00% return on the cash used, or 30.29% annualized — what we reference as the YieldBoost.
Below is a chart capturing the last twelve months of trading activity for Avidity Biosciences Inc, with the $45.00 strike marked in green:
Shifting focus to the call side of the options market, the call contract at the $49.00 strike price has a current bid of $9.60. Should an investor opt to purchase RNA stock at $47.64 per share and then sell this call contract as a “covered call,” they would agree to sell the stock at $49.00. Including the premium collected, this could yield a total return of 23.01% at the June 2025 expiration (before broker fees). However, if RNA shares rise significantly, the potential gains might be limited, emphasizing the importance of analyzing the past trading history and business fundamentals. Below is a chart displaying RNA’s trailing twelve months of trading activity, with the $49.00 strike marked in red:
The $49.00 strike represents about a 3% premium over the current stock price, meaning there’s also a chance the covered call may expire worthless. If that happens, the investor would retain both their shares and the premium collected. Current analysis suggests a 38% probability of this occurring. We will track and update these odds over time on our website, including the trading history of the option contract. Should the covered call contract expire worthless, the premium would result in a 20.15% additional return for the investor, or 30.52% annualized — another instance we label as the YieldBoost.
In terms of volatility, the implied volatility for the put contract is currently at 78%, while the call contract sits at 79%. The actual trailing twelve-month volatility, based on the last 251 trading days and today’s price of $47.64, is calculated at 75%. For more options contract ideas that may be of interest, please visit StockOptionsChannel.com.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
