Investors interested in 10x Genomics Inc (TXG) are currently evaluating the market price of $22.36 per share. One alternative investment strategy is selling an August put option at a $15 strike price, which has a current bid of $1.45. This represents a potential 9.7% return relative to the $15 commitment, equating to a 20.6% annualized rate of return.
As of today, the trailing twelve-month volatility for 10x Genomics Inc is calculated at 70%. In mid-afternoon trading on Tuesday, the put volume among S&P 500 components reached 1.01 million contracts, matching the call volume, which indicates a put:call ratio of 0.71. This is higher than the long-term median of 0.65, suggesting a stronger interest in put options than typically seen.
Should the stock price fall by 32.1% and the put contract be exercised, the effective cost basis for the shares would be $13.55 per share. However, unless this decline occurs, the main benefit for put sellers lies in the premium collected.
