New Options Trading Opportunities Emerged for Apogee Therapeutics (APGE)

Investors in Apogee Therapeutics Inc (Symbol: APGE) are observing the launch of new options trading for the August 15th expiration date. With 99 days remaining until expiration, these newly available contracts may offer sellers of puts or calls the chance to earn a higher premium compared to options with shorter expiration dates.

Using our YieldBoost formula, we identified one put and one call contract from the August 15th options chain that may be of significant interest.

Put Contract Analysis

The put contract at the $35.00 strike price currently has a bid of $5.60. If an investor chooses to sell this put contract, they would be agreeing to buy the stock at $35.00 while also collecting the premium, which effectively reduces the shares’ cost basis to $29.40 (before broker commissions). For those already considering purchasing APGE shares, this represents an appealing alternative to buying at the current price of $35.59 per share.

This $35.00 strike price reflects an approximate 2% discount from the current trading price, indicating that the contract is out-of-the-money by that percentage. Current analytics suggest a 63% likelihood that the put contract will expire worthless. We will continue to monitor these odds over time, providing updated data on our website under the contract detail page. If the contract indeed expires worthless, the premium translates to a 16.00% return on the cash commitment, or 58.99% annualized, a metric we term YieldBoost.

Call Contract Analysis

Shifting our focus to the call side, the call contract at the $40.00 strike price has a current bid of $4.50. If an investor buys shares of APGE at the current price of $35.59 and then sells this call contract as a “covered call,” they would commit to selling the stock at $40.00. Including the premium collected, this could yield a total return of 25.04% if the stock is called away by the August 15th expiration (excluding dividends and broker commissions). However, if APGE shares significantly increase in value, investors might miss additional upside potential. Therefore, assessing both the historical trading data and the company’s fundamentals is essential.

The $40.00 strike represents approximately a 12% premium over the current trading price, indicating that it is also out-of-the-money by that percentage. Currently, there is a 46% chance that the covered call will expire worthless, allowing the investor to retain both their shares and the collected premium. If the contract does expire worthless, the premium correlates to a 12.64% increase in return or 46.62% annualized, which we also refer to as YieldBoost.

Volatility and Market Context

The implied volatility for the put contract stands at 116%, while the call contract’s implied volatility is at 114%. In contrast, the actual trailing twelve-month volatility, measured against the last 250 trading days including today’s price of $35.59, is determined to be 66%. For further insights into put and call contract opportunities, investors can visit our resources.

Below, we present charts showing the trading history for Apogee Therapeutics Inc, with highlights indicating the positions of the $35.00 and $40.00 strike prices:

The views and opinions expressed herein are those of the author and do not necessarily reflect any affiliated entities.