Oscar Healths 320M Volume Ranks 281st as 2027 Options Reveal Volatility Divergence

Oscar Health (OSCR) closed August 25, 2025, down 0.54% to $17.25, with a trading volume of $320 million, ranking 281st in market activity for the day. The stock’s recent performance coincided with the introduction of new options contracts expiring in December 2027. These long-dated derivatives, with 844 days until expiration, highlight potential opportunities for investors to capitalize on time value differentials. The $17.00 put option, currently trading with a bid of $6.90, offers a 1% discount to the stock’s price, with a 79% probability of expiring worthless according to implied volatility metrics. Conversely, the $22.00 call option, with a bid of $7.20, reflects a 28% premium over the current price, presenting a 30% chance of expiring unexercised, which could yield a 41.74% return for covered call writers if the contract becomes void.

The options activity underscores investor sentiment around Oscar’s volatility profile. Implied volatility for the put and call contracts stands at 96% and 84%, respectively, compared to the stock’s 12-month historical volatility of 82%. This suggests market participants are pricing in heightened uncertainty for the December 2027 horizon. While the put contract’s high implied volatility aligns with bearish positioning, the call’s lower volatility indicates tempered bullish expectations. Investors considering these options should weigh the risk-reward dynamics against Oscar’s recent trading range and broader market conditions.

A backtested strategy involving the top 500 stocks by daily volume over the past three years yielded mixed results. From December 2021 to August 2025, the approach generated $2,940 in total returns, with a Sharpe ratio of 1.53, indicating favorable risk-adjusted performance. However, the strategy faced a maximum drawdown of $1,960, reflecting market volatility. The best monthly return was $840 in December 2021, while August 2025 marked the worst outcome with a $790 loss. These figures highlight the strategy’s sensitivity to short-term market fluctuations, despite its overall positive risk-adjusted returns.