Investors in Amylyx Pharmaceuticals Inc (AMLX) gained access to new options contracts for September 18th, 2023, offering potential investment opportunities. Notably, a put contract at a $15.00 strike price has a current bid of $3.20, suggesting a commitment to purchase shares at this price while collecting a premium, resulting in an effective cost basis of $11.80 per share, which is approximately 24% below the current trading price of $15.55. Current analytics indicate a 70% likelihood that the put contract will expire worthless.
On the calls side, a $16.00 strike price call contract is bid at $3.60. If shares are purchased at $15.55 and the call is sold, it could yield a total return of 26.05% if shares are called away at expiration. The current odds of this call contract expiring worthless are estimated at 32%. The implied volatility for both the put and call contracts stands at approximately 121%, while the actual trailing twelve-month volatility is calculated at 74%.
