September 2026 Options Now Available For Biogen (BIIB)

Analysis of Biogen (BIIB) options reveals potential strategies for investors: selling a $120 put expiring in September 2026 could yield a 13.42% return if the contract expires worthless, representing a 10.14% annualized "YieldBoost," with a 67% probability of this outcome; alternatively, a covered call strategy involving selling a $145 call expiring in September 2026 could generate a 29.89% total return if the stock is called away, while a worthless expiration would still provide a 13.56% return, or 10.25% annualized, with a 49% probability. The implied volatility for the put and call options are 43% and 40% respectively, while the actual trailing twelve month volatility is 29%.

Analysis

The article details two specific options strategies for Biogen Inc. (BIIB) with September 2026 expirations, offering investors alternative approaches to stock ownership or income generation. Selling the $120 strike put contract, with a current bid of $16.10, could result in acquiring BIIB shares at an effective cost basis of $103.90, a notable discount from the current $124.64 share price. Alternatively, if this put option expires worthless, it could provide a 13.42% return on the cash commitment, equating to a 10.14% annualized YieldBoost, an outcome with a stated 67% probability according to current analytical data. On the other hand, a covered call strategy involves purchasing BIIB shares at the current price of $124.64 and selling the $145 strike call contract, which has a current bid of $16.90. This strategy could yield a total return of 29.89% (before broker commissions) if the stock is called away at the September 2026 expiration. If the call expires worthless, an event with a 49% probability, the investor would retain the shares and the premium, representing a 13.56% YieldBoost, or 10.25% annualized. A key observation is that the implied volatilities for the put (43%) and call (40%) options are significantly higher than BIIB's actual trailing twelve-month volatility of 29%, suggesting that options are pricing in greater future price movement than recently observed, potentially making option selling strategies more attractive due to elevated premiums.

Key Decisions for Investors

• Investors interested in acquiring Biogen shares at a substantially lower cost basis than the current market price could consider selling the out-of-the-money September 2026 $120 puts, while acknowledging the obligation to purchase shares at $120 if BIIB's price falls below this strike by expiration.
• Existing Biogen shareholders aiming to generate income and willing to cap upside potential above the $145 level could evaluate selling the September 2026 $145 covered calls, especially given the potential for an annualized yield exceeding 10% if the options expire worthless.
• The notable premium of implied volatility (40-43%) over Biogen's historical volatility (29%) suggests that option sellers are currently well-compensated for risk, however, this also signals market expectations of increased stock price fluctuations which should be carefully integrated into any investment thesis for Biogen.
• Given the long-dated nature of these options (expiring September 2026), investors should continuously monitor Biogen's stock performance, underlying business fundamentals, and evolving option market metrics, such as implied volatility and the probabilities of these specific contracts expiring in- or out-of-the-money.