Opportunity Knocks: New Options Available for Kymera Therapeutics Investors
Investors tracking Kymera Therapeutics Inc (Symbol: KYMR) now have fresh options for the June 20th expiration date. With 156 days until these contracts expire, there’s ample time value, presenting an enticing chance for option sellers to secure higher premiums compared to contracts with shorter durations. At Stock Options Channel, we have analyzed the KYMR options chain and pinpointed one specific put and one call contract of notable interest.
Put Contracts Present Potential Discount
The put contract at the $35.00 strike price boasts a current bid of $2.50. If an investor sells-to-open this put contract, they agree to buy the stock at $35.00 while collecting the premium. This arrangement effectively lowers the cost basis to $32.50 per share (excluding broker commissions). For investors eyeing KYMR shares, this option poses an attractive alternative to purchasing them outright at the current price of $41.99/share.
This $35.00 strike price reflects about a 17% discount from the stock’s current trading level, putting it in an “out-of-the-money” position. Current data suggests a 73% chance that this put option may expire worthless. For those monitoring these odds, Stock Options Channel plans to track the probabilities over time, providing updates through extensive contract details on our site. Should this contract expire worthless, the premium would yield a 7.14% return on the cash commitment, translating to a 16.72% annualized return — something we refer to as YieldBoost.
Exploring the Call Side
Turning to the call options for KYMR, the $45.00 strike price currently has a bid of $5.40. If an investor buys shares at the existing price of $41.99/share and sells-to-open this call as a covered call, they commit to selling the stock at $45.00. Including the premium collected, this could lead to a total return of 20.03% if the stock is called away by the June 20th expiration date (before accounting for broker commissions). However, should KYMR’s shares soar beyond this price, investors might miss out on further gains, highlighting the importance of analyzing past trading history and business fundamentals.
A chart illustrating KYMR’s trailing twelve-month trading history clearly marks the $45.00 strike position, emphasizing its relevance in relation to historical performance.
Evaluating the Stakes
The $45.00 strike represents a roughly 7% premium above the stock’s present trading price, indicating a possibility that the covered call could expire worthless. This outcome would allow the investor to retain both their stock and the collected premium. Current analytical estimates suggest a 45% probability of this scenario. As with the put options, Stock Options Channel will monitor these odds, offering an updated chart of performance over time. Should the covered call expire worthless, the premium would boost returns by 12.86%, resulting in an impressive 30.10% annualized yield, which aligns with our YieldBoost concept.
It’s also worth noting that the implied volatility for the put contract stands at 81%, while the volatility for the call contract is slightly lower at 79%. In contrast, considering the past year of trading data, the actual trailing twelve-month volatility is calculated at 58%. To explore more opportunities involving put and call options, visit 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.
