Investors in UiPath Inc (NYSE: PATH) gained access to new options expiring in June 2027. A notable put contract at the $8.00 strike price has a current bid of $0.60, potentially allowing sellers to reduce their effective purchase cost to $7.40 per share, down from the current trading price of $10.75—representing a 26% discount. With an 80% chance of expiring worthless, this strategy could yield a 7.50% return on cash commitment.
On the call side, a contract at the $15.00 strike has a bid of $1.26. If executed as a covered call, this could generate a total return of 51.26% if shares are called away at expiration. The $15.00 strike is approximately 40% above the current price, with a 55% chance of expiring worthless, allowing investors to retain their shares and pocket the premium, translating to an 11.72% boost to returns. The implied volatility for the put is 107%, while the call stands at 66%.
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