Investors are considering purchasing Grail Inc (Symbol: GRAL) shares, currently priced at $32.46, while some are exploring the option of selling puts as a strategy. A notable put contract is the January 2027 put at a $20 strike price, offering a bid of $4.30, which translates to a 21.5% return against the $20 commitment, or a 14.8% annualized rate of return.
If Grail Inc’s shares do not fall 39.1% for the put to be exercised, the put seller would only gain the premium. The company’s trailing twelve-month volatility is calculated at 107%. On Friday afternoon trading, put volume among S&P 500 components reached 1.69 million contracts, compared to 2.13 million calls, resulting in a put:call ratio of 0.80, higher than the long-term median of 0.65.
