Investors in Oscar Health Inc. (OSCR) began trading new options today with a June 2027 expiration date. Notably, a put contract at a $25.00 strike price has a current bid of $5.15, which indicates a potential cost basis of $19.85 for shares if the contract is sold, representing a 6% discount from the current share price of $26.68. The probability of the put contract expiring worthless is estimated at 72%, with the potential for a 20.60% return on the cash commitment if this occurs.
Additionally, a call contract at a $32.00 strike price has a current bid of $6.35. If investors purchase shares at $26.68 and sell this call, they could see a total return of 43.74% if the stock is called away at expiration. However, there is a 39% chance that the call could also expire worthless, allowing investors to retain both their shares and premiums, aiming for an additional return of 23.80%.
The implied volatility for both contracts is around 82%, while the actual trailing twelve-month volatility sits at 78%.
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