New Options Trading Launch for Ark Genomic Revolution ETF

New options contracts for Ark Genomic Revolution ETF (ARKG) are now trading, providing investors with potential for a lower purchase cost. The recent developments around the $24.00 put option strike could attract both new and existing investors.

Date: 02-01-2025

AI Rating: 7

Options Trading Insight
Investors are seeing new trading opportunities with the Ark Genomic Revolution ETF (ARKG), notably with the introduction of a put contract that may present a cost-efficient way to enter a position.

The intriguing put contract at the $24.00 strike price enables potential investors to commit to purchasing shares at a reduced effective cost of $23.20, factoring in the premium. This is set against the current market price of $24.59 per share, indicative of a near 2% discount, which could appeal to those looking to invest in ARKG.

Importantly, the current 53% odds of the put contract expiring worthless suggest a relatively balanced risk profile. If the contract does expire worthless, investors can earn a premium return, equating to a substantial annualized yield of 28.29%. Such yield potentials are attractive, especially in a fluctuating market.

Moreover, we observe an implied volatility rate of 49% for the put contract, contrasting with an actual trailing volatility of 40% over the last 251 trading days. The discrepancy between implied and actual volatility indicates potential mispricing in the market, presenting further trading opportunities for investors savvy in options strategies.

Stocks: ARKG