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Investors in Cytokinetics Inc (CYTK) have access to new options expiring on December 19. Notably, a put contract at the $55.00 strike price has a current bid of $2.10, allowing sellers to potentially achieve a cost basis of $52.90 per share. This represents an 8% discount from the current trading price of $59.85. The odds of this put contract expiring worthless are estimated at 69%, yielding a 3.82% return on cash commitment, or 19.08% annualized.
On the call side, a contract at the $65.00 strike price is bid at $3.30, which could provide a total return of 14.12% if exercised at expiration. The $65.00 strike is approximately 9% above the current price, with a 53% chance of expiring worthless, potentially yielding a 5.51% extra return, or 27.55% annualized. Both contracts feature an implied volatility of around 65%.
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