Options strategies for EXACT Sciences Corp. (EXAS), with the stock at $49.38, present distinct opportunities: selling the $49.00 put for $2.20 could yield 4.49% (38.11% annualized) if it expires worthless (56% probability), or allow acquisition at an effective $46.80. A covered call using the $50.00 strike for $2.10 offers a potential 5.51% return if called away, or a 4.25% (36.10% annualized) yield if it expires worthless (47% probability). These options carry implied volatilities of 66% (put) and 64% (call), notably higher than EXAS's 51% trailing 12-month actual volatility.
Analysis of options on EXACT Sciences Corp. (EXAS), trading at $49.38, reveals elevated implied volatility relative to its historical performance, presenting distinct opportunities for premium-selling strategies. The implied volatility for near-the-money put (66%) and call (64%) options is substantially higher than the stock's actual trailing twelve-month volatility of 51%. This discrepancy inflates option premiums, making them attractive to sellers. For instance, selling the $49.00 strike put contract for a $2.20 premium offers a way to acquire the stock at an effective cost basis of $46.80, a discount to the current price. Alternatively, if the stock remains above $49.00, this strategy could yield a 4.49% return on the cash commitment, or 38.11% annualized, with a 56% probability of success. For existing shareholders, a covered call strategy at the $50.00 strike yields a $2.10 premium. This offers a potential 5.51% total return if the stock is called away, or an annualized yield of 36.10% if the option expires worthless, an event with a 47% probability. Both strategies capitalize on the market pricing in higher future volatility than what has been recently observed.
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mildly positive
Sentiment Score
0.25
Ticker Sentiment
