Interesting CDNA Put And Call Options For February 2026

Investors considering CareDx Inc (CDNA) may find opportunities in options contracts, with the $17.50 put offering a potential 5.71% return (8.51% annualized) if it expires worthless, which analytical data suggests has a 69% probability. Conversely, selling the $22.50 call against owned shares could yield a 24.15% return if the stock is called away, while a worthless expiration, currently estimated at 48%, would still provide a 5.79% premium boost (8.62% annualized); implied volatilities for the put and call are 72% and 69%, respectively, compared to a trailing twelve-month volatility of 67%.

Analysis

The article outlines two specific options strategies for CareDx Inc (CDNA), currently trading at $19.01 per share, which could appeal to investors with varying objectives. For those looking to acquire shares at a lower basis, selling the $17.50 strike put contract, with a current bid of $1.00, offers an effective purchase price of $16.50 if assigned. This represents an approximate 8% discount to the current market price. Analytical data suggests a 69% probability of this put expiring worthless, which would yield a 5.71% return on the cash commitment (8.51% annualized), termed 'YieldBoost'. Alternatively, for investors holding or acquiring CDNA shares, selling the $22.50 strike call contract (bid at $1.10) as a covered call could generate a total return of 24.15% if the stock is called away by the February 2026 expiration. This strike is approximately 18% above the current price. There's a 48% estimated chance this call expires worthless, allowing the investor to retain shares and the premium, representing a 5.79% 'YieldBoost' (8.62% annualized). The implied volatility for the put is 72% and for the call is 69%, both slightly above the actual trailing twelve-month volatility of 67%, indicating option premiums reflect a somewhat higher expectation of future price swings compared to recent history.

Key Decisions for Investors

• Investors bullish on CDNA but seeking a lower entry point might consider selling the $17.50 put, accepting the obligation to buy at $16.50 or potentially earning an 8.51% annualized return if the option expires out-of-the-money.
• Current CDNA shareholders or those initiating a position at $19.01 could evaluate selling the $22.50 covered call to generate income, potentially achieving an 8.62% annualized yield if it expires worthless or a 24.15% total return if called by February 2026, while acknowledging the cap on upside potential beyond $22.50.
• Given that implied volatilities of 72% (put) and 69% (call) are slightly above the 67% historical volatility, option sellers might find current premiums relatively attractive if they anticipate future volatility will be closer to or below recent historical levels.