Opportunities Emerge in Align Technology Options Market
New Contracts Offer Attractive Returns for ALGN Investors
Investors in Align Technology Inc (Symbol: ALGN) are eyeing fresh options that started trading this week, set to expire in January 2026. With 449 days until expiration, these new contracts provide sellers of puts or calls the chance to earn higher premiums compared to those with nearer expiration dates. In our analysis, Stock Options Channel has identified an interesting put and call contract within the January 2026 options chain.
The put contract at the $220.00 strike price currently has a bid of $35.30. If an investor opts to sell-to-open this put, they agree to buy the stock at $220.00 while collecting the premium. This action effectively lowers their cost basis to $184.70 (excluding broker commissions). For anyone looking to acquire ALGN shares, this strategy may be appealing compared to the current price of $224.12 per share.
This $220.00 strike is about a 2% discount from ALGN’s present trading price, meaning the put contract could potentially expire worthless. Current analytics suggest there’s a 61% chance of that occurring. Stock Options Channel will monitor these odds and provide updates on our website, allowing investors to track changes over time. Should the contract expire worthless, the collected premium would equate to a 16.05% return on the cash commitment, or an annualized 13.04%, which is designated as YieldBoost.
Below is a chart illustrating the trading history of Align Technology Inc over the past twelve months, highlighting where the $220.00 strike positions itself:
On the calls side of the options chain, there is a call contract available at the $240.00 strike price with a bid of $37.60. If an investor purchases shares of ALGN at the current price of $224.12 and simultaneously sells this call as a “covered call,” they are committing to sell the stock at $240.00. Combining the premium with the potential stock sale results in a total return of 23.86% if the stock is called away at January 2026 expiration (excluding any dividends and before broker commissions). However, significant upside could remain if ALGN shares increase substantially, making it essential to review the company’s past trading patterns and fundamentals.
Here’s a chart showcasing ALGN’s trailing twelve months of trading history, emphasizing the $240.00 strike price:
The $240.00 strike indicates a roughly 7% premium over the present trading price, suggesting the possibility of this covered call contract expiring worthless as well. Current estimates show a 44% chance of that happening. Stock Options Channel will continue to track these odds and historical data on our website. If the covered call expires worthless, the premium would amount to a 16.78% additional return, or 13.64% annualized, also classified as YieldBoost.
Looking at implied volatility, the put contract reflects a rate of 44%, while the call contract has a 49% implied volatility. Meanwhile, the trailing twelve-month volatility, considering 251 days of trading data in addition to today’s price of $224.12, stands at 39%. For more ideas on put and call options contracts, check out StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
