Exploring Put Options: A Strategy for Aurinia Pharmaceuticals Investors
Investors interested in Aurinia Pharmaceuticals Inc (Symbol: AUPH) may find the current market price of $8.24 per share a bit high. As an alternative approach, selling put contracts could offer a beneficial strategy. One noteworthy option is the January 2026 put with a $7 strike price, which is currently trading at a bid of $1.05. By selling this put, investors can secure a premium that equates to a 15% return based on the $7 commitment or a 17.4% annualized return, a concept we refer to as the YieldBoost at Stock Options Channel.
It’s important to understand that selling a put does not allow investors to capture the upside potential of AUPH shares as owning the stock would. The put seller will only acquire shares if the option is exercised. The buyer of the put would choose to exercise the contract at the $7 strike only if it was more favorable than selling at the current market price. Should Aurinia’s share price drop by 15.2%, resulting in the contract being exercised, the put seller would realize a cost basis of $5.95 per share (after accounting for the $1.05 premium). In scenarios where the contract is not exercised, the put seller benefits solely from the premium and the associated 17.4% annualized yield.
Below, we provide a visual representation of Aurinia Pharmaceuticals Inc’s trailing twelve-month trading history, with the $7 strike highlighted for clarity:
The chart above, alongside Aurinia’s historical volatility, serves as a valuable tool when paired with fundamental analysis. This combination can help evaluate whether selling the January 2026 $7 put for a 17.4% annualized return offers a worthwhile balance of reward versus risk. Our calculations show the trailing twelve-month volatility for Aurinia Pharmaceuticals Inc, based on the last 250 trading day closing values and today’s price of $8.24, stands at 44%. For additional put option ideas across various expiration dates, visit the AUPH Stock Options page on StockOptionsChannel.com.
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Also See:
- CNMD Price Target
- USCI Average Annual Return
- FIT Market Cap History
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
