Investors interested in Zenas Biopharma Inc (Ticker: ZBIO) are considering selling put options due to the current market price of $21.23 per share. A notable opportunity is the May put with a $12.50 strike, bidding at 75 cents, which offers a 6% return on the $12.50 commitment. This translates to a 21.9% annualized rate of return.
Selling the put does not provide access to the stock’s upside unless the contract is exercised, which would occur if the share price drops 41.1%. The potential downside in that case would bring a cost basis of $11.75 per share, after accounting for the premium collected.
Zenas Biopharma’s trailing twelve-month volatility is calculated at 131%, suggesting a high-risk investment landscape. For further details on put options and alternative strategies, investors can explore the ZBIO Stock Options page.
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