Options Trading Insights for Mirum Pharmaceuticals Inc

Investors in Mirum Pharmaceuticals Inc are eyeing new options contracts with various strategies offering attractive returns. The new opportunities could influence MIRM stock prices positively by investors looking for strategic positions.

Date: 31-01-2025

AI Rating: 7

Options Trading Analysis
Mirum Pharmaceuticals Inc (MIRM) has introduced new options contracts which could influence stock prices. Specifically, the put contract at a $45.00 strike price could represent an attractive entry point for potential investors as it offers a 10% discount to the current trading price of $49.85. Investors can sell this put option for a premium, committing to buy MIRM stock below its current price, potentially lowering their cost basis.

This strategy could appeal to investors looking for downside protection while also aiming for a modest return if the put option expires worthless, with a current odds estimation of 71% for it to expire without being exercised. If so, the premium collected would yield a return of 0.22% or 1.66% annualized.

On the call side, the $55.00 strike price presents a potential total return of 10.83% if the stock is called away. This strategy also carries the risk of the call option expiring worthless, with a 62% chance that investors could retain both their premium and shares, providing a YieldBoost of 0.50% or 3.74% annualized if exercised in that manner.

The current implied volatility for the puts is 66%, while for the calls it is 61%. This reflects market expectations of potential price fluctuations. Given the trailing twelve month actual volatility of 51%, this discrepancy may indicate some bullish sentiment towards MIRM stock performance moving forward.

Stocks: MIRM