New Options Unveiled for Spyre Therapeutics: An Investor’s Perspective

Investors in Spyre Therapeutics Inc (Symbol: SYRE) are exploring fresh opportunities this week with the introduction of new options set to expire in January 2025. Stock Options Channel has evaluated the SYRE options chain and uncovered noteworthy potential in both a put and a call contract.

Attractive Put Option: A Strategic Choice

A put contract at the $22.50 strike price currently has a bid of 20 cents. Selling this put contract means an investor agrees to purchase the stock at $22.50, all while collecting the premium. This effectively reduces the cost basis for acquiring shares to $22.30 (excluding broker commissions). For those looking to buy SYRE shares, this could significantly lower their initial investment compared to the current trading price of $27.03 per share.

Notably, the $22.50 strike price offers an approximate 17% discount to SYRE’s current market price, placing it out-of-the-money by that amount. Importantly, there’s a 74% chance that this put contract may expire worthless based on current analytical data, including the greeks and implied greeks. Stock Options Channel will monitor these probabilities over time and provide detailed updates on our website. If the contract expires worthless, the collected premium would provide a return of 0.89% based on the cash commitment, translating to an annualized yield of 5.59%, a figure we refer to as the YieldBoost.

Call Option Insights: A Potential High Return

In the call option segment, a contract at the $40.00 strike price is currently bid at 10 cents. Should an investor buy SYRE at the current price of $27.03 and then sell the call as a “covered call,” they would commit to selling the stock at $40.00. Including the premium collected, this strategy could yield a total return of 48.35% (excluding dividends) if the stock is called away by January 2025, before accounting for broker commissions. However, substantial upside potential exists if SYRE shares rise significantly.

Highlighted in red within the trailing twelve-month trading history chart is the $40.00 strike price, suggesting its position relative to overall market performance.

The $40.00 strike represents a 48% premium over SYRE’s current trading price, meaning there is also a chance that the covered call could expire worthless. In such cases, investors would retain both their shares and the premium. Current data suggests there is a 67% likelihood of this outcome, and we will continue to track these odds along with the trading history of the option contract on our website. If the covered call expires worthless, the premium would contribute an additional return of 0.37%, or 2.33% annualized, marking another YieldBoost.

Volatility Context: What Investors Should Know

The put contract has an implied volatility of 115%, while the call contract shows 138%. We have calculated the actual trailing twelve-month volatility, considering the last 251 trading day closing values alongside today’s price of $27.03, to be 81%. For further insights into additional put and call options worth examining, please visit StockOptionsChannel.com.

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