Aurora Innovation Options: A Potential Buying Opportunity for Investors
Investors in Aurora Innovation Inc (Symbol: AUR) have new options available this week with a May 30th expiration. According to Stock Options Channel, our YieldBoost formula has identified a notable put contract in the AUR options chain.
The put contract at the $5.00 strike price currently has a bid of 35 cents. If an investor sells-to-open this put contract, they commit to buying the stock at $5.00, while also collecting the premium. This effectively puts their cost basis at $4.65 per share (before broker commissions). For those looking to purchase shares of AUR, this option could be an appealing alternative to the current market price of $6.21 per share.
Since the $5.00 strike price offers approximately a 19% discount to the present trading price, there is a possibility that this put contract may expire worthless. Current analytical data indicates a 79% chance of this occurring. Stock Options Channel will monitor these odds over time, publishing a chart of these statistics on the contract detail page for this option. If the contract does expire worthless, the premium would yield a 7.00% return on the cash commitment, translating to an annualized return of 52.14%, which we refer to as the YieldBoost.
Below is a chart illustrating the trailing twelve-month trading history for Aurora Innovation Inc, highlighting in green the position of the $5.00 strike price in relation to this history:
The implied volatility for this put contract example stands at 114%. In contrast, we have calculated the actual trailing twelve-month volatility, which considers the last 251 trading day closing values along with today’s price of $6.21, to be 108%. For further insights on put and call options contract ideas, visit StockOptionsChannel.com.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
