Investors considering shares of Cullinan Therapeutics Inc (CGEM) can explore selling put options as an alternative strategy. As of the latest data, the December put at the $9 strike is bidding at $1.65, offering an 18.3% return against the $9 commitment or a 25.1% annualized return.
For context, CGEM’s shares are currently priced at $13.20, and to profit from the put selling, the stock would need to decline by at least 32.1% for the contract to be exercised, resulting in a cost basis of $7.35 after accounting for the premium collected. The trailing twelve months’ volatility for CGEM is calculated at 73%, which could be a factor in assessing the risk-reward balance of this strategy.
On Friday, S&P 500 options trading revealed a put volume of 2.92 million contracts, matching call volume, resulting in a put-to-call ratio of 0.72, above the long-term median of 0.65, indicating heightened market activity among put buyers.
