Amicus Therapeutics Options Gain Investor Interest as December Contracts Launch
New $11.00 Strike Price Put Contract Offers Unique Buying Opportunity
Investors in Amicus Therapeutics Inc (Symbol: FOLD) saw new options trading begin this week, specifically for contracts set to expire on December 20th. Utilizing our YieldBoost formula, Stock Options Channel has examined the FOLD options chain and identified a noteworthy put contract.
A put contract with a strike price of $11.00 currently has a bid of 30 cents. If an investor sells-to-open this put contract, they are agreeing to buy the stock at $11.00, while also collecting the premium. This action would result in a cost basis of $10.70 per share (excluding broker commissions). For those interested in acquiring shares of FOLD, this strategy may present a cost-effective alternative compared to today’s trading price of $12.06 per share.
This $11.00 strike represents about a 9% discount from the current trading price, meaning it is out-of-the-money by that percentage. There is also a possibility that the put contract may expire worthless. Our current analytical data, including greeks and implied greeks, suggests a 73% probability of this occurring. Stock Options Channel will continue to monitor these odds and will publish updates on our website under the contract detail page. Should the contract expire worthless, the premium would yield a return of 2.73% on the cash commitment, or 16.58% annualized — a figure we refer to as YieldBoost.
Below, you can see a chart depicting the trailing twelve-month trading history for Amicus Therapeutics Inc. The chart highlights in green where the $11.00 strike price falls within that history:
The implied volatility in the aforementioned put contract sits at 42%. In contrast, our analysis of the actual trailing twelve-month volatility, which considers the closing values from the last 250 trading days along with today’s price of $12.06, also stands at 42%. For more investment strategies exploring put and call options, visit StockOptionsChannel.com.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
