Ultragenyx Pharmaceutical Inc (Symbol: RARE) began trading new options today with a January 2027 expiration date. Notably, investors can consider a put contract at a $30.00 strike price, which has a current bid of $5.00. Selling this put would effectively reduce the cost basis of purchasing shares to $25.00, given the current share price is $30.21. The probability of this put contract expiring worthless is estimated at 69%.
Additionally, a call contract with a $35.00 strike price is available with a current bid of $6.00. If investors purchase shares at $30.21 and sell this call, they stand to gain a total return of 35.72% if the stock gets called away by January 2027. The chances of this call expiring worthless are currently estimated at 39%.
The implied volatility for the put contract is 61%, while the call contract’s implied volatility is 62%. Current trading price for Ultragenyx shares is $30.21.
