Investors interested in Kymera Therapeutics Inc (KYMR) are considering alternatives to the current market price of $87.93 per share. A notable strategy is selling the December put option at a $60 strike price, which has a bid of $7.20. This offers a 12% return on the $60 commitment, translating to an annualized rate of 15.1%. However, the put seller benefits primarily from the premium unless the stock drops 31.3% or more, triggering the contract.
As of Tuesday’s mid-afternoon trading, put volume among S&P 500 components was at 1.01 million contracts, matching call volume and reflecting a put:call ratio of 0.71, above the long-term median of 0.65. This indicates an unusual level of put buying activity compared to historical trends. Kymera’s trailing twelve-month volatility was calculated at 74%, which could help investors evaluate the risk versus reward in selling the put option.
