Interesting ALKS Put And Call Options For February 2026

Investors in Alkermes (ALKS) can consider selling put options at the $29 strike, currently bid at $2.90, potentially yielding a 10% return on cash commitment (14.90% annualized) if the contract expires worthless, which analytical data suggests has a 63% probability. Alternatively, a covered call strategy at the $32 strike, bid at $3.30, offers a potential 20.19% return if the stock is called away, or an 11.24% yield boost (16.74% annualized) if it expires worthless, with a 45% probability of the latter; implied volatility for the put and call options are 60% and 61%, respectively, compared to a trailing twelve month volatility of 34%.

Analysis

The article outlines two options-based strategies for Alkermes plc (ALKS), currently trading at $29.37 per share. Selling a cash-secured put option at the $29.00 strike price, with a current bid of $2.90, offers investors an effective entry point at $26.10 if assigned, or a 10.00% return on cash commitment (14.90% annualized) should the option expire worthless, an outcome with a reported 63% probability. Concurrently, a covered call strategy involving the purchase of ALKS shares at $29.37 and selling the $32.00 strike call option for February 2026 expiration at a $3.30 bid could result in a 20.19% total return if the stock is called away by that date, or an 11.24% additional return (16.74% annualized) if the call expires worthless, an event with a 45% probability. A key observation is the disparity between the implied volatilities of the put (60%) and call (61%) contracts and ALKS's trailing twelve-month actual volatility of 34%, indicating that current option prices reflect expectations of greater future price movement than observed historically, thereby enhancing premiums for option sellers.

Key Decisions for Investors

• Investors interested in acquiring Alkermes plc (ALKS) at a potential discount to its $29.37 current price could consider selling the $29.00 strike puts, aiming for an effective purchase price of $26.10 or a 10.00% premium yield if the option expires out-of-the-money.
• Existing ALKS shareholders or those initiating a position could evaluate selling the February 2026 $32.00 strike covered calls to generate income, targeting a potential 20.19% total return if the stock is called away or an 11.24% yield boost if the option expires worthless, while accepting a cap on further upside.
• The significantly higher implied volatility (60-61%) compared to historical volatility (34%) suggests that option selling strategies for ALKS may currently offer more attractive premiums than historical data alone would imply.
• Carefully assess the risk-reward profile of these strategies, including the obligation to purchase shares with the put and the capped upside with the covered call, particularly given the February 2026 expiration of the call option which entails a long-term market view and commitment.