Biogen Options Trading Begins: Insights for Investors

Investors show interest in new Biogen options as they trade today. BIIB's put and call contracts reveal significant potential for cost-effective investing strategies.

Date: 08-01-2025

AI Rating: 7

Options Trading Activity: Investors have started to trade new options contracts for Biogen Inc (BIIB), indicating increased investor interest. The put contract at the $150.00 strike price has a current bid of $3.60, which implies selling it can result in a cost basis of $146.40 for shares, offering a 1% discount compared to the current price of $151.47.

The chance of the put contract expiring worthless stands at 57%, potentially yielding a 2.40% return, or an impressive 17.18% annualized. This presents an enticing investment strategy for those looking to buy BIIB shares.

Covered Call Strategy: On the call side, the $155.00 strike price contract is currently bid at $3.00. If investors opt for a covered call by purchasing shares at $151.47 and selling the call, they commit to a potential total return of 4.31% at expiration—excluding dividends. However, investors may face an opportunity cost if BIIB's shares increase significantly above $155.00.

The likelihood of the call contract expiring worthless is calculated at 52%, allowing the investor to keep their shares and the premium, potentially leading to a 1.98% additional return or 14.17% annualized.

Volatility Insight: The implied volatility for the put is noted at 38%, while the call’s implied volatility is slightly lower at 37%, contrasting with the trailing twelve month volatility of 25%. Such variations in volatility can influence option pricing and investor decision-making.

This report provides investors with a framework to evaluate their strategies regarding Biogen’s stock and the associated options, particularly focusing on the competitive premiums available and potential returns from expiration scenarios.

Stocks: BIIB