Investors interested in Oruka Therapeutics Inc (Symbol: ORKA) should consider selling put options as an alternative to purchasing shares at the current market price of $57.19 per share. The August put contract at the $35 strike is currently bid at $7.50, offering a potential 21.4% return based on the $35 commitment, equating to a 57.5% annualized rate of return.
Oruka’s stock has a trailing twelve-month volatility of 72%, indicating a significant risk factor when evaluating this strategy. During mid-afternoon trading on Tuesday, the put volume among S&P 500 components reached 1.98 million contracts, compared to 2.53 million calls, resulting in a put-to-call ratio of 0.78, which is higher than the long-term median of 0.65.
