Summit Therapeutics Inc (Symbol: SMMT) stock is currently trading at $26.36 per share. Investors considering purchasing the stock may find selling the January 2026 put at an $18 strike price attractive, with a bid of $2.55. This represents a 14.2% return against the $18 commitment and an annualized rate of return of 30.8%.
To benefit from this strategy, investors would only own shares if the contract is exercised, which would occur if SMMT’s shares drop by 31.5%. The trailing twelve-month volatility for Summit Therapeutics is currently calculated at 116%, providing further context for potential risks and rewards. Additionally, on Friday, the put volume among S&P 500 components reached 1.69 million contracts, resulting in a put:call ratio of 0.80, indicating increased put buying compared to the historical median of 0.65.
