Revolution Medicines Inc (RVMD) has introduced new options set to expire on December 18th, 2024. Investors can explore a put contract at a $95.00 strike price with a current bid of $15.60, potentially allowing sellers to acquire shares at an effective cost of $79.40. This represents a 5% discount to the current trading price of $99.58, and there is a 66% chance that the put contract may expire worthless, offering a 16.42% return on cash commitment, or 21.18% annualized.
On the calls side, a $105.00 strike price call contract is available, currently bidding at $17.80. If executed, this would allow investors who purchase shares at $99.58 to potentially achieve a total return of 23.32% by December 18th, barring commissions. The likelihood of the covered call expiring worthless is estimated at 41%, providing a potential 17.88% additional return, or 23.05% annualized.
Implied volatility stands at 63% for the put contract and 59% for the call, while the actual trailing twelve-month volatility is calculated at 53%.
