PTC Therapeutics Options Analysis Highlights Attractive Trades

Investors are eyeing PTC Therapeutics (PTCT) options ahead of May 16th. A put contract at $50 offers a potential discount, while a covered call at $60 shows a possible 10.96% return. This analysis could affect investor sentiment and stock prices moving forward.

Date: 24-03-2025

AI Rating: 7

Options Availability
PTC Therapeutics Inc (PTCT) has introduced new options, particularly a put contract at $50 and a call contract at $60. The put option represents approximately a 12% discount to the current share price of $57.14. This could incentivize investors to consider options trading as a strategy.

Potential For Gains
For the put contract, should it expire worthless, a premium return of 1.10% on the cash commitment is projected, equivalent to an annualized return of 7.58%. This represents an appealing alternative for investors wishing to enter a position in PTCT stock without purchasing at the higher market price.

The call contract, meanwhile, provides a potential total return of 10.96% if PTC shares are sold at $60, provided an investor sells the call contract after purchasing shares at the current price. The strike being only 5% above the current trading level indicates a noticeable upside opportunity.

Volatility Insights
The implied volatility for both contracts is significant, with puts at 66% and calls at 63%. Given the actual volatility calculated at 56% over the past year, this could indicate that market participants expect higher movement in the stock price, affecting how investors might position themselves.

Stocks: PTCT