Revolution Medicines Inc. Options: Put and Call Contracts for April 2026

Investors in Revolution Medicines Inc. have new options available for April 2026. The put contract at $27.00 strike price has a current bid of $1.45, while the call contract at $42.00 strike price has a current bid of $4.20. If sold, these contracts could represent a 5.37% return on the cash commitment or a 15.88% total return. The options' time value, with 227 days until expiration, may present a potential opportunity for sellers of puts or calls to achieve a higher premium.

Investors in Revolution Medicines Inc. (Symbol: RVMD) now have new options available for the April 2026 expiration, presenting potential opportunities for both put and call sellers. With 227 days until expiration, the time value of these contracts offers a chance for higher premiums compared to contracts with closer expiration dates.

The put contract at the $27.00 strike price has a current bid of $1.45. Selling this put contract would commit the investor to purchase RVMD shares at $27.00, but they would also collect the $1.45 premium. This results in a cost basis of $25.55 per share (before broker commissions). For an investor already interested in purchasing RVMD shares, this represents an attractive alternative to the current market price of $39.87 per share. The $27.00 strike is approximately 32% below the current trading price, making it out-of-the-money by that percentage. The odds of this put contract expiring worthless are currently estimated at 85% [1]. If the contract expires worthless, the premium would represent a 5.37% return on the cash commitment, or 8.64% annualized, referred to as the YieldBoost.

On the call side, the contract at the $42.00 strike price has a current bid of $4.20. Purchasing RVMD shares at the current price of $39.87 and selling this call contract as a "covered call" would commit the investor to sell the shares at $42.00. The total return, excluding dividends, would be 15.88% if the stock gets called away at the April 2026 expiration (before broker commissions). The $42.00 strike represents an approximate 5% premium to the current trading price, making it out-of-the-money by that percentage. The odds of this covered call contract expiring worthless are currently estimated at 45% [1]. If the contract expires worthless, the premium would represent a 10.53% boost to the investor's return, or 16.94% annualized, also referred to as the YieldBoost.

The implied volatility in the put contract is 72%, while the implied volatility in the call contract is 53%. The actual trailing twelve month volatility is 45%. These options provide investors with the opportunity to generate income and potentially enhance their returns while managing risk.

References:
[1] https://www.nasdaq.com/articles/interesting-rvmd-put-and-call-options-april-2026