Investors in Illumina Inc (Symbol: ILMN) have access to new options for February 2026 expiration, including a notable $105.00 strike put contract with a current bid of $10.90. Selling this contract obligates the investor to purchase shares at $105.00, effectively lowering the cost basis to $94.10. The current trading price is $107.34, indicating a potential 2% discount.
The analytical data suggests a 62% chance that the put contract will expire worthless, offering a projected 10.38% return on cash commitment, or 18.48% annualized. Meanwhile, a call contract at the $115.00 strike price, with a current bid of $11.20, could yield a 17.57% total return if called away by expiration, though there’s a 49% chance it also expires worthless.
The implied volatilities for the put and call contracts are 43% and 42%, respectively, while the actual trailing twelve-month volatility is calculated at 42%. The current stock price is $107.34.
