Oscar Health Inc: Analyzing Put Strategies for Investors

Investors are considering Oscar Health Inc (OSCR) stock at $14.65/share. Selling a January 2026 put at a $10 strike with a 15.7% annualized return may be a strategic alternative, despite offering limited upside potential. These insights reflect cautious investor sentiment.

Date: 10-01-2025

AI Rating: 6

Put Selling Strategy
Investors interested in Oscar Health Inc (OSCR) are evaluating the option of selling puts at a $10 strike price to enhance potential returns while being cautious about the current market price of $14.65. The attractive premium of $1.60 corresponds to an annualized return of 15.7%, which may entice some investors seeking passive income through options.

Potential Risks
However, it's essential to consider the risks involved with this strategy. Since the put seller does not gain from the stock's upside unless the contract is exercised (which occurs only if the stock price falls below the strike price), the maximum profit is limited to the premium collected. The risk is further highlighted since the stock would need to drop around 32.7% for the put to provide a favorable outcome, leading to a lower effective cost basis of $8.40 per share.

Volatility Considerations
The report mentions a trailing twelve-month volatility of 69%, indicating that the stock experiences high price fluctuations. Such volatility can lead to substantial risk when executing put-selling strategies. Investors must assess whether the 15.7% annualized return justifies potential exposure to downside movement.

Stocks: OSCR