Investors in AXT Inc (NASDAQ: AXTI) saw the initiation of new options trading today for December 2027 expirations. A notable call contract at a $300.00 strike price currently has a bid of $31.50, representing a potential total return of 315.26% if the stock, currently priced at $79.83, is called away at expiration. This strike price reflects a 276% premium over the current share price.
The current odds of the call contract expiring worthless, allowing the investor to retain both shares and premium collected, stand at 37%. Should this occur, it would yield an extra 39.46% return for the investor, or 23.65% annualized. The implied volatility for the call contract is 152%, while the trailing twelve-month volatility is calculated at 127%.
