Investors in UiPath Inc (Symbol: PATH) can now trade new options set to expire in September 2027. One notable contract is a put option at a $10.00 strike price, currently carrying a bid of $1.36. If sold, this contract allows investors to purchase shares at $10.00, effectively lowering their cost basis to $8.64 based on today’s trading price of $13.65, representing a 27% discount. The odds of this contract expiring worthless are estimated at 80%, with a premium yield of 13.60% on the cash commitment.
Conversely, a call option at a $25.00 strike price is available for $1.33. Selling this as a covered call after purchasing shares at $13.65 offers a potential return of 92.89% if exercised by expiration. There’s a 67% chance this contract could expire worthless, allowing the investor to retain both their shares and the premium earned, equating to a 9.74% additional return. Implied volatilities for the put and call contracts stand at 71% and 72%, respectively.
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