AUR Options Contract Offers 25% Discount Opportunity
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 08 2026
0mins
Source: NASDAQ.COM
- Options Overview: The current bid for the put contract at a $3.50 strike price is 5 cents, and if an investor sells-to-open this contract, they commit to buying the stock at $3.50 while collecting the premium, effectively lowering their cost basis to $3.45, which presents an attractive alternative compared to the current share price of $4.65.
- Discount Analysis: The $3.50 strike represents a 25% discount to the current trading price, indicating a possibility that the put contract may expire worthless, with current analytical data suggesting an 87% chance of this occurring, providing a potential risk management strategy for investors.
- Yield Potential: Should the contract expire worthless, the premium would yield a 1.43% return on the cash commitment, or an annualized yield of 10.43%, known as YieldBoost, highlighting the appeal of options trading for investors.
- Volatility Data: The implied volatility for the put contract is 80%, while the actual trailing twelve-month volatility, based on the last 250 trading days, is calculated at 79%, indicating a high market expectation for AUR stock volatility, which investors should carefully assess for risk management.
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Analyst Views on AUR
Wall Street analysts forecast AUR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AUR is 10.36 USD with a low forecast of 4.00 USD and a high forecast of 15.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
4 Buy
3 Hold
0 Sell
Moderate Buy
Current: 4.500
Low
4.00
Averages
10.36
High
15.00
Current: 4.500
Low
4.00
Averages
10.36
High
15.00
About AUR
Aurora Innovation, Inc. develops the Aurora Driver, which is designed as a platform to adapt and interoperate among a multitude of vehicle types and applications. The Aurora Driver is an advanced and scalable suite of self-driving hardware, software, and data services to transform the global transportation market. The Company has integrated the Aurora Driver into numerous different vehicle platforms designed to meet its requirements: from passenger vehicles to light commercial vehicles to Class 8 trucks. It intends to launch Aurora Driver for Freight, its driverless trucking subscription service, as its first commercial product. Its second core market focuses on passenger mobility, initially targeting the ride hailing space with Aurora Driver for Rides, its driverless ride hailing subscription service. Its third core market is local goods delivery, which spans several sub-segments, including last-mile parcel and post, prepared food, grocery, and business-to-business (B2B) delivery.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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