New Options on Upstart Holdings Offer Potential Gains for Investors

Investors in Upstart Holdings Inc (Symbol: UPST) have access to new options expiring in January 2026. These options could present opportunities for sellers to earn higher premiums compared to contracts with shorter expiration dates. With 399 days until these options expire, the environment seems ripe for strategic plays.

Put Options: A Path to Lower Entry Cost

One notable put contract is available at a $75.00 strike price, with a current bid of $24.35. If investors choose to sell to open this put, they would commit to purchasing UPST shares at $75.00, while also receiving the premium. This effectively lowers their shares’ cost basis to $50.65 (excluding broker commissions). For those already planning to invest in UPST, this option offers a significant discount relative to the current price of $83.23 per share.

The $75.00 strike price represents approximately a 10% discount from UPST’s current trading price, meaning the put could potentially expire worthless. Current analytical data suggest a 71% chance of this scenario. Stock Options Channel will continue to monitor these odds and share updates on their website. Should the put contract expire worthless, the premium would yield a 32.47% return on cash commitment, equating to a 29.70% annualized return—referred to as the YieldBoost.

Call Options: Profit Potential but with Upside Risks

Turning to the call options, there is a contract available at an $85.00 strike price, with a current bid of $26.30. If an investor buys UPST shares at the current price of $83.23 and sells this call option as a “covered call,” they agree to sell the stock at $85.00. This could provide a total return of 33.73% at the January 2026 expiration, not factoring in commissions or dividends. However, substantial upside could be forfeited if UPST shares rise significantly.

Notably, the $85.00 strike price is about a 2% premium over the current trading price. There’s a possibility that this covered call could expire worthless, allowing investors to keep both their shares and the premium collected. The odds of this happening are estimated at 34%. As with the puts, Stock Options Channel will keep track of these probabilities over time, providing ongoing insights on their website. If the covered call expires worthless, the premium would contribute an additional 31.60% return—28.91% on an annualized basis—which is also labeled as a YieldBoost.

Volatility Insights

For the put contract referenced, the implied volatility stands at 92%, while the call contract reflects an implied volatility of 91%. Calculating the actual trailing twelve-month volatility based on the last 251 trading days and the current price of $83.23 yields a figure of 91%. For further ideas on put and call options worth exploring, investors can check out StockOptionsChannel.com.

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Also see:

• Top Stocks Held By Ray Dalio
• PFMT Options Chain
• LMAT Average Annual Return

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.