CRISPR Therapeutics (CRSP): New Options Trading Data Offers Insights for Investors

Investors in CRISPR Therapeutics AG (Symbol: CRSP) are now considering new options that began trading today, with a March 28th expiration date. Using our YieldBoost formula, we’ve analyzed the CRSP options chain to highlight notable contracts that may interest traders.

Evaluating the $40 Put Contract

The put contract at the $40.00 strike price currently holds a bid of $2.00. If an investor sells-to-open this put contract, they agree to buy the stock at $40.00 while also collecting the premium. This results in an effective cost basis of $38.00 per share (before broker commissions). Investors eyeing CRSP stocks might find this alternative appealing compared to the current market price of $42.35 per share.

This $40.00 strike price reflects roughly a 6% discount from the stock’s current trading price, meaning it is out-of-the-money by that percentage. Notably, data indicates a 66% chance that the put contract will expire worthless. Over time, Stock Options Channel will monitor these odds and provide updates on our website. Should the contract expire without being exercised, the premium could yield a 5.00% return on the cash set aside for this, translating to an impressive annualized return of 36.53%, a figure we refer to as the YieldBoost.

Exploring the $49 Call Contract

On the other side of the options chain, a call contract at the $49.00 strike price is bidding at $1.45. If an investor purchases shares at the current price of $42.35 and simultaneously sells-to-open this call contract, they promise to sell the stock at $49.00. By including the premium received, this could offer a total return of 19.13% if the option is executed upon expiration (excluding dividends and before broker fees). While this presents a solid profit, investors should recognize the potential to miss out on larger gains if CRSP shares appreciate significantly.

The $49.00 strike equates to a 16% premium over the current trading price, indicating that there’s a chance this covered call could also expire worthless. In that scenario, investors retain both their shares and the premium earned. Current data suggests there is a 68% possibility of this outcome happening. Stock Options Channel will track these figures regularly, offering insights via our detail page. If the covered call expires without execution, the extra return provided by the premium would equal 3.42%, equating to an annualized return of 25.01%, also a YieldBoost.

Volatility Statistics

Both the put and call contracts mentioned showcase implied volatility around 61%. In comparison, after analyzing the last 250 trading days and considering the present stock price of $42.35, we estimate the actual trailing twelve-month volatility to be 49%. For further options contract ideas worthy of consideration, feel free to 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.