Exploring Smart Options: Strategies for Agilon Health Investors
Investors interested in Agilon Health Inc (Symbol: AGL) may find the current market price of $2.52 per share unappealing. However, one alternative strategy involves selling put options, specifically the January 2027 put at the $2 strike, which is currently bid at 75 cents. This premium translates to a 37.5% return on a $2 commitment, or an 18.6% annualized rate of return—a concept we refer to as YieldBoost at Stock Options Channel.
It’s important to note that selling a put option does not provide the same benefits as owning shares of AGL. In this scenario, the put seller will only own the shares if the contract is exercised. The seller on the opposite end would decide to exercise the option only if it offers a better outcome than selling the shares at the current market price. Thus, unless Agilon Health’s stock decreases by 19.7%, resulting in an exercised contract, the main advantage for the put seller remains in collecting the premium for that notable annualized rate of return of 18.6%.
Below is a chart showing the trailing twelve-month trading history for Agilon Health Inc, with the $2 strike highlighted in green for easy reference:
The chart above, combined with the stock’s historical volatility, can serve as a valuable tool when evaluating whether selling the January 2027 put at $2 for an 18.6% annualized return is justified relative to the risks involved. Our calculations indicate that Agilon Health Inc has a trailing twelve-month volatility of 95%, based on the last 250 trading day closing values and the current price of $2.52. For more options contract ideas with various expiration dates, you can visit the AGL Stock Options page at StockOptionsChannel.com.
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Also see:
- Institutional Holders of OHPA
- CSWI Price Target
- Top Ten Hedge Funds Holding UDN
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
