Exploring Alternative Options for Investing in Oscar Health Inc
For investors considering a stake in Oscar Health Inc (OSCR), the current market price of $14.65 per share may seem high. An appealing alternative strategy could be to sell puts, specifically the January 2026 $10 put option, which has a bid of $1.60. By collecting this premium, an investor could achieve a 16% return based on the $10 commitment, translating to a 15.7% annualized rate of return, a concept we refer to as YieldBoost at Stock Options Channel.
Selling a put, however, does not allow investors to participate in the potential upside of the stock like owning shares would. Instead, the put seller might only end up acquiring shares if the contract is exercised. This exercise would mainly benefit the buyer if the stock price drops below the $10 strike price, allowing them to sell the shares at a price more favorable than the current market rate. Unless Oscar Health shares drop by 32.7%, resulting in effectively buying the stock at $8.40 per share (after accounting for the $1.60 premium), the sole benefit for the put seller is the collected premium that yields a 15.7% annualized return.
To visualize the potential for this strategy, the chart below illustrates Oscar Health Inc’s trading history over the past year and indicates where the $10 strike price falls in relation to that history:
The chart, along with the stock’s historical volatility, serves as a valuable tool alongside fundamental analysis. This helps in assessing whether selling the January 2026 $10 put, yielding a 15.7% annualized rate of return, is an appropriate risk-to-reward scenario. Currently, Oscar Health Inc’s trailing twelve-month volatility stands at 69%, calculated using the last 250 trading day closing values alongside today’s price of $14.65. To explore additional put options with varying expiration dates, visit the OSCR Stock Options page at StockOptionsChannel.com.
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Also see:
- IBMH YTD Return
- Funds Holding EMPW
- HZNB Insider Buying
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
