Investors in Biogen Inc (NASDAQ: BIIB) are currently engaging in new options trading for contracts set to expire on October 16, 2023. The new put contract at the $180 strike price has a bid of $15.60, which could allow investors to effectively purchase the stock at $164.40 when accounting for the premium, representing a 14.19% discount from the current share price of $191.55. This option carries a 66% probability of expiring worthless.
On the call side, the $200 strike price has a current bid of $20.80. If investors purchase BIIB shares and sell this call contract, they are committing to sell at $200.00, potentially yielding a total return of 15.27% if exercised. The likelihood of this contract expiring worthless is estimated at 46%.
The implied volatility for the new put and call contracts stands at 41% and 40%, respectively, while the actual trailing twelve-month volatility is calculated at 34%.
