Investors in Repligen Corp. (NASDAQ: RGEN) began trading new options today, with a June 2027 expiration date. The new contracts present a potential opportunity for put and call sellers to achieve higher premiums due to the lengthy time until expiration, which is 328 days.
The $130.00 put contract currently has a bid of $20.00, allowing investors to purchase shares at an effective cost basis of $110.00 if executed, providing a 15.38% return on the cash commitment if the contract expires worthless, with a 64% chance of that occurring. Conversely, a $150.00 call contract bids at $21.00, promising a total return of 27.76% if the stock is called away at expiration, with a 46% chance of expiration without being executed.
The current stock price for RGEN is $133.84, marking a 3% discount for the put option and a 12% premium for the call option relative to the trading price. Implied volatility for the put is 52%, and 55% for the call, while actual trailing volatility stands at 45%.
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