Investors in Halozyme Therapeutics Inc (HALO) can now explore new options expiring in August 2027, offering different strategies for potential profit due to the extended time value. The newly available put contract at a $110.00 strike price has a bid of $10.00, presenting an opportunity for those looking to acquire shares at an effective basis of $100.00, a 3% discount from the current trading price of $113.14. There is a 64% likelihood that this put contract may expire worthless, potentially leading to a 9.09% return on the cash commitment, or 10.18% annualized.
On the calls side, a $125.00 strike contract has a current bid of $11.10. If investors buy shares at $113.14 and sell this covered call, they can achieve a total return of 20.29% if the stock is called away at expiration, although there’s a 50% chance it may also expire worthless. Should this happen, they would retain their shares and secure an additional yield of 9.81%, or 10.98% annualized. Current implied volatilities for the put and call contracts are 38% and 37%, respectively.
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