Protagonist Therapeutics Inc (PTGX) launched new options trading this week, specifically for contracts expiring on August 15th. A notable put contract at a $50.00 strike price currently has a bid of $1.30, offering a cost basis of $48.70 per share if sold-to-open, representing a 7% discount from the current trading price of $53.64.
The probability of the $50.00 put contract expiring worthless stands at 66%, providing a potential 2.60% return based on the cash commitment, translating to an annualized return of 18.25%. Meanwhile, a call contract at a $65.00 strike price is available with a current bid of $0.40, representing a 21% premium over the current share price. The odds of this covered call expiring worthless is 70%, potentially providing a 0.75% additional return or 5.23% annualized.
The implied volatility for the put is 61%, while the call is at 76%. Actual trailing volatility is calculated at 57% based on recent trading values.
