New Options Available for Edgewise Therapeutics: Insights for Investors

Investors in Edgewise Therapeutics Inc (Symbol: EWTX) have exciting new options with April 17th expiration dates. At Stock Options Channel, our YieldBoost formula has analyzed the EWTX options chain and pinpointed one put and one call contract that stand out for their potential benefits.

Analyzing the $25.00 Put Contract

The put contract at the $25.00 strike price currently has a bid of $2.00. If an investor sells-to-open this put contract, they agree to buy the stock at $25.00 but also receive the premium, effectively lowering their cost basis to $23.00 (before broker commissions). For investors looking to acquire shares of EWTX, this could be a more appealing option compared to the current market price of $25.49/share.

This $25.00 strike price reflects roughly a 2% discount to the current trading price, meaning it is out-of-the-money by that same percentage. There is a 63% chance that this put contract may expire worthless, based on current analytical data. Stock Options Channel will continue to monitor these odds and provide updates on our website.

If the put contract does expire worthless, the premium received would yield an 8.00% return on the initial cash commitment or an annualized return of 44.95%. At Stock Options Channel, we refer to this as the YieldBoost.

Below is a chart showing the trailing twelve-month trading history for Edgewise Therapeutics Inc, with the $25.00 strike price highlighted:

Exploring the $28.00 Call Contract

On the calls side, the $28.00 strike price has a current bid of $2.05. If an investor buys EWTX shares at the current price and sells-to-open this call contract as a “covered call,” they agree to sell at $28.00. This strategy, when combined with the premium collected, could yield a total return of 17.89% if the stock is called away at the upcoming expiration date (before broker commissions). However, if EWTX shares experience significant growth, it’s essential to monitor historical trading patterns and business fundamentals closely.

Refer to the chart below showing EWTX’s trailing twelve-month trading history, with the $28.00 strike price highlighted:

Notably, the $28.00 strike represents about a 10% premium over the current trading price, indicating it is also out-of-the-money by that percentage. There is a 45% chance that this covered call contract might expire worthless, in which case the investor retains both the shares and the premium received. We will continue tracking these probabilities and updating our data on Stock Options Channel.

If the covered call does expire worthless, the premium would yield an additional return of 8.04%, or 45.19% on an annualized basis, also labeled as YieldBoost.

The implied volatility for the put contract is 114%, while the call contract stands at 118%. In contrast, the actual trailing twelve-month volatility, calculated from the last 250 trading day closing values along with today’s price of $25.49, is 75%. For those interested in exploring more put and call options opportunities, please visit StockOptionsChannel.com.

Top YieldBoost Calls of the S&P 500 »

Also see:

• Institutional Holders of MDA
• ISRA Average Annual Return
• A O Smith Average Annual Return

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.