Celldex Therapeutics Options Offer Investment Opportunities and Insights

Investors in Celldex Therapeutics, Inc. (CLDX) can now consider new options for the June 20th expiration. Recent analysis from Stock Options Channel highlights one put and one call contract as noteworthy within the CLDX options chain.

Put Contract at $16.00 Strike Price

The put contract with a $16.00 strike price currently has a bid of 5 cents. By selling to open this put contract, an investor commits to purchasing the stock at $16.00 while collecting the premium. This raises the effective cost basis of the shares to $15.95, which offers a more attractive alternative than the current market price of $19.57 per share.

Since the $16.00 strike is about an 18% discount from the present trading price, there’s a chance the put contract could expire worthless. Current analytical data indicates an 84% probability of this occurring. Over time, Stock Options Channel will monitor these odds and provide updates on their website. If the contract expires worthless, the premium equates to a 0.31% return on the cash commitment, or an annualized 2.53%—termed as the YieldBoost.

Historical Context for CLDX Trading

Below is a chart displaying the trailing twelve-month trading history for Celldex Therapeutics, Inc., with the $16.00 strike highlighted:

Call Contract at $20.00 Strike Price

On the call side, there is a contract at the $20.00 strike price with a current bid of $1.45. An investor could buy shares of CLDX at $19.57 and then sell this call contract as a covered call. This would obligate them to sell shares at $20.00, yielding a total return of 9.61% if the stock is called away at expiration, excluding any dividends.

However, potential upside may be limited if CLDX shares appreciate significantly, making it essential to consider both the recent trading history and the company’s fundamentals. The following chart illustrates CLDX’s trailing twelve months trading history, featuring the $20.00 strike in red:

Analysis of the Call Contract

The $20.00 strike represents about a 2% premium over the current trading price, meaning there’s also a potential for the covered call contract to expire worthless. Current analytics suggest a 47% likelihood of this outcome. Should this happen, the investor would retain both their shares and the premium collected, equating to a 7.41% additional return, or an annualized 60.10%—also classified as a YieldBoost.

The implied volatility for the put contract stands at 62%, while the call contract’s implied volatility is at 96%. In contrast, the actual trailing twelve-month volatility, based on the last 250 trading days and current price of $19.57, is calculated to be 55.

For a deeper dive into additional put and call options contracts, further resources are available through Stock Options Channel.

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