New Options For Regeneron Pharmaceuticals: A Closer Look
Regeneron Pharmaceuticals Releases New Options for January 2025
Investors in Regeneron Pharmaceuticals, Inc. (Symbol: REGN) welcomed the addition of new options today, set to expire in January 2025. Our YieldBoost formula at Stock Options Channel has analyzed the REGN options chain and identified one noteworthy put and one call contract.
Put Contract Details and Potential Returns
The put contract at the $740.00 strike price currently has a bid of $20.50. If an investor decides to sell-to-open this put contract, they agree to buy the stock at $740.00 while collecting the premium. This means their effective cost per share would drop to $719.50 (excluding broker commissions). For investors interested in buying REGN shares, this option offers an attractive alternative to the current market price of $756.89 per share.
The $740.00 strike price is approximately 2% below today’s trading price, placing it out-of-the-money by that percentage. Analysts estimate that there is a 62% chance this put contract will expire worthless. Over time, Stock Options Channel will monitor these odds, providing updates on our website under the contract detail page. If the contract expires worthless, the investor could realize a 2.77% return on their cash commitment, equivalent to a 22.98% annualized return, which we refer to as the YieldBoost.
Examining the Call Contract
Looking at the call side, the $770.00 strike call contract currently bids at $23.30. If an investor buys REGN shares at $756.89 and sells-to-open this call, they commit to sell the stock for $770.00. Adding the premium received would yield an estimated return of 4.81% if the stock is called away at the January 2025 expiration (before deducting broker fees). However, if REGN shares rise significantly, selling the call may limit potential profits, highlighting the importance of reviewing both the trading history and business fundamentals of Regeneron Pharmaceuticals. Below, you will find a chart illustrating REGN’s twelve-month trading history with the $770.00 strike highlighted in red:
The $770.00 strike price represents about a 2% premium to the current market price. This means there is also a chance the covered call could expire worthless, allowing the investor to retain their shares and the collected premium. Current data suggest there is a 53% probability of this occurring. Stock Options Channel will track these odds as well, offering insights on our website, where we will also chart the trading history of this option contract. Should the covered call expire worthless, the premium would add a 3.08% return to the investor, or an annualized 25.54%, which constitutes another example of YieldBoost.
Volatility Insights
The implied volatility for the put contract is 32%, while the call contract’s implied volatility is 30%. In contrast, the historical volatility over the past twelve months—based on the last 252 trading days combined with today’s price of $756.89—stands at 22%. For more insights on additional put and call options contracts, visit StockOptionsChannel.com.
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Also see:
- VTI shares outstanding history
- GTEC Average Annual Return
- Institutional Holders of RPA
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
