Investors Weigh Put Options for Celldex Therapeutics Stock

Investors looking to buy shares of Celldex Therapeutics, Inc. (Symbol: CLDX) may find an attractive strategy in selling put options, especially if they are cautious about the current market price of $19.05 per share. One notable option is the December put contract with a $15 strike price, which has a current bid of $2.00. By collecting this premium, investors can realize a 13.3% return based on the $15 commitment, equating to an impressive 20.1% annualized yield, a concept we refer to as YieldBoost at Stock Options Channel.

It’s important to note that selling a put contract does not grant investors the same exposure to upside potential as owning shares. The put seller will only obtain shares if the option is exercised. The other party would exercise the option only if it provides a better result than selling at the current market price. If Celldex Therapeutics experiences a decline of 21.3%, forcing the exercise of the contract, investors will end up with a cost basis of $13.00 per share after accounting for the $2.00 premium. Otherwise, the sole advantage for the put seller lies in the collected premium, achieving a 20.1% annualized return.

The chart below illustrates the trading history of Celldex Therapeutics over the past twelve months, highlighting the $15 strike in green in relation to this history:

This chart, combined with Celldex Therapeutics’ historical volatility, serves as a useful reference alongside fundamental analysis. Due to recent fluctuations, we have calculated the trailing twelve-month volatility for Celldex to be 55%, based on the last 249 trading day closing values and the current price of $19.05. Investors seeking further options strategies can explore various put contracts and expirations on the CLDX Stock Options page of StockOptionsChannel.com.

During mid-afternoon trading on Monday, S&P 500 put volume reached 961,483 contracts, while call volume was recorded at 1.13 million, leading to a put-to-call ratio of 0.85 for the day. This activity indicates a higher than usual demand for put options compared to calls, as the long-term median put-to-call ratio is typically around 0.65. This trend highlights a notable increase in bearish sentiment among options traders today.

To discover which options are currently trending among traders, you can find out here.

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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.