Investors eyeing Perpetua Resources Corp (NASDAQ: PPTA) may find the January 2027 put option at a $20 strike, currently bid at $3.10, an attractive alternative strategy amid the stock’s market price of $26.99. Selling this put could yield a 15.5% return against a $20 commitment, equating to a 16.3% annualized rate of return.
The stock would have to drop 25.8% for the put option to be exercised, resulting in an effective purchase price of $16.90 per share, factoring in the premium. Perpetua Resources Corp’s historical volatility over the past twelve months stands at 84%, a relevant consideration for potential investors assessing risk versus reward in selling this option.
