Spyre Therapeutics: Assessing Put Options Strategy

Investors eyeing Spyre Therapeutics stock may explore selling put options as a strategy. This approach could yield a 13.5% annualized return, depending on stock performance. The report analyzes the potential impacts on stock price and strategy viability.

Date: 19-03-2025

AI Rating: 6

Put Option Strategy Insight
Spyre Therapeutics Inc (SYRE) presents an interesting scenario with its stock trading at $18.16 per share. For investors reluctant to purchase at this rate, selling puts could be a viable alternative. The highlighted September put option at the $12.50 strike, with a current bid of 85 cents, offers a potential return of 13.5% annually.

However, selling a put option means the investor will not gain from any upward movement in the stock price unless the option is exercised. If the share price drops to $12.50 or below, the investor may end up acquiring the shares, which would equate to a cost per share of $11.65 after accounting for the premium received.

Additionally, the trailing twelve-month volatility for Spyre Therapeutics is substantial at 66%, indicating that the stock’s price has experienced significant fluctuations. This level of volatility can give investors insights into the risk associated with the put selling strategy.

Investors must carefully weigh the risk-reward balance of selling the put option. If the company shares remain stable or increase, the investor stands to benefit from the premium. But if the shares decline significantly, they would have to cope with the potential downside of owning the shares at a higher cost basis.

Stocks: SYRE