New Options Available for Halozyme Therapeutics: Investors Take Note
Investors in Halozyme Therapeutics Inc (Symbol: HALO) are seeing fresh opportunities this week with new options set to expire in February 2025. Our analysis at Stock Options Channel has highlighted compelling contracts among these new offerings, specifically one put and one call contract.
The put contract at the $45.00 strike price has a current bid of 55 cents. Should an investor choose to sell-to-open this contract, they agree to purchase the stock at $45.00 while collecting the premium. This effectively lowers the cost basis to $44.45 per share (excluding broker commissions). For those looking to buy HALO shares currently priced at $47.00, this could be a worthwhile option.
Notably, the $45.00 strike price is about a 4% discount from the present trading price, suggesting the put might expire worthless. Current analytics indicate a 64% probability of this happening. We will track these odds over time and provide updates on our website as they shift. If the put expires worthless, the collected premium would yield a return of 1.22%, or an annualized rate of 7.56%, which we term the YieldBoost.
Call Contract Offers a Covered Call Opportunity
On the call side, a contract at the $50.00 strike price is available, also with a current bid of 55 cents. If an investor buys HALO stock at the current price of $47.00 and sells this call as a “covered call,” they commit to selling the stock at $50.00. This would yield a total return of 7.55% (excluding dividends) if exercised at the February 2025 expiration. However, there’s potential for more gains if HALO shares rise significantly, making it essential to examine both the trading history and the company’s fundamentals.
The following chart illustrates the trading history of Halozyme Therapeutics Inc over the past year, highlighting where the $50.00 strike price sits in relation to that data:
As the $50.00 strike price represents about a 6% premium over the current trading price, there’s a chance the covered call might become worthless. If this occurs, the investor retains both their shares and the premium. Current analytics suggest a 57% chance of this happening. We will monitor and chart these probabilities on our website over time. If the covered call contract expires worthless, the collected premium would offer an additional return of 1.17%, or 7.24% annualized, also referred to as the YieldBoost.
Volatility Insights
The implied volatility for the put contract stands at 52%, while the call contract’s implied volatility is at 50%. On the other hand, we calculate the actual trailing twelve-month volatility—considering the last 251 trading days and today’s price of $47.00—to be 41%. For more options contract opportunities, 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.
