Investors in Recursion Pharmaceuticals Inc (NASDAQ: RXRX) began trading new options this week, set to expire on March 27th. Key contracts include a put option at the $3.00 strike price, currently bid at $0.09, which would require a purchase commitment at $3.00, effectively lowering the cost basis to $2.91 after collecting the premium. This put represents a 20% discount from the current trading price of $3.77, with a 76% chance of expiring worthless.
On the call side, a $4.00 strike price call option is bid at $0.30, where selling it as a covered call could yield a total return of 14.06% if the stock is called away by expiration. The $4.00 strike is approximately 6% above the current stock price, with a 34% likelihood of expiring worthless, allowing investors to retain both shares and premium collected. The implied volatilities for the put and call contracts are 316% and 121%, respectively, while the actual trailing twelve month volatility stands at 88%.
