Investors in Neurocrine Biosciences, Inc. (NBIX) have access to new option contracts expiring in December 2027, providing a potential opportunity for higher premiums due to the 619 days until expiration. A notable put option at the $130.00 strike price has a bid of $16.90, implying a cost basis of $113.10 for investors willing to purchase shares. This represents a 2% discount to the current trading price of $132.55, with a 66% probability that the put could expire worthless, offering a potential 13.00% return on cash commitment or 7.67% annualized.
On the calls side, a $150.00 strike call option currently bids at $18.00. If an investor buys shares at $132.55 and sells this call, they are committing to sell the stock for $150.00, potentially realizing a total return of 26.74% if the stock is called away. However, this call is approximately 13% over the current price, and there is a 46% chance it might also expire worthless, allowing the investor to keep both the shares and the premium. The implied volatility for the put contract is 36%, while for the call it’s at 33%, with trailing twelve-month volatility calculated at 32%.
