GLPG241220P00025000 Option on Galapagos NV ADR

GLPG Stock  USD 27.30  0.09  0.33%   
Galapagos' latest option contracts expiring on 2024-12-20 are carrying combined implied volatility of 1.01 with a put-to-call open interest ratio of 1.8 over 7 outstanding agreements suggesting investors are buying way more puts than calls on contracts expiring on 2024-12-20. The total put volume is at 106, with calls trading at the volume of 106. This yields a 13.25 put-to-call volume ratio.

Open Interest Against 2024-12-20 Option Contracts

The chart above shows Galapagos' distribution of open interest by maturity on contracts that have not yet been settled. The area between the two highest points is the projection of the price at expiration. Galapagos' open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Galapagos' option, there is no secondary market available for investors to trade.

In The Money vs. Out of Money Option Contracts on Galapagos

Analyzing Galapagos' in-the-money options over time can help investors to take a profitable long position in Galapagos regardless of its overall volatility. This is especially true when Galapagos' options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money Galapagos' options could be used as guardians of the underlying stock as they move almost dollar for dollar with Galapagos' stock while costing only a fraction of its price.
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Galapagos NV ADR. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in american community survey.

Galapagos NV ADR In The Money Call Balance

When Galapagos' strike price is surpassing the current stock price, the option contract against Galapagos NV ADR stock is said to be in the money. When it comes to buying Galapagos' options that are 'In the Money' or 'Out of the Money', the choice depends on your outlook for the underlying security, financial situation, and what you are trying to achieve.
While 'out-of-the-money' option contracts written on Galapagos NV ADR are typically viewed as the more aggressive, there are potential upsides to purchasing these types of options contracts. For one, the cost to buy an 'Out of the Money' option is lower than the cost to buy an 'In the Money' option. This cost-benefit is due to the fact that at the time of the purchase, 'Out of the Money' contracts have no intrinsic value. So, while the potential for a 100% loss is more significant, the cost and risk to enter the trade are lower.

Galapagos Current Options Market Mood

Galapagos' open interest and total value indicators provide investors with the necessary information to digest the overall options buildup for its expiring contracts. In addition, it helps Galapagos Stock's traders understand whether a recent fall or rise in the market is unreasonable and if the time has come to take contrarian positions. These ratios are calculated based on options trading volumes and current open interest.

Put-to-Call Open Interest

Put-to-Call Volume

Most options investors, including buyers and sellers of Galapagos' calls and puts, are not very successful. It is estimated that an average options trader loses somewhere between 80% to 90% of the time. Galapagos' option open interest and volume spread between outstanding puts and calls are regarded by many investors as reliable indicators of the overall future market direction.

Rule 16 of the current Galapagos contract

Base on the Rule 16, the options market is currently suggesting that Galapagos NV ADR will have an average daily up or down price movement of about 0.0631% per day over the life of the 2024-12-20 option contract. With Galapagos trading at USD 27.3, that is roughly USD 0.0172. If you think that the market is fully incorporating Galapagos' daily price movement you should consider buying Galapagos NV ADR options at the current volatility level of 1.01%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
  
Purchasing Galapagos options can give investors a meaningful hedge against losses and, therefore, could be used conservatively to decrease the volatility of your portfolio. However, many options could also amount to little more than gambling, significantly enhancing your overall portfolio risk. One simple example of these aggressive strategies is the sale of "uncovered" Galapagos calls. Remember, the seller must deliver Galapagos NV ADR stock to the call owner when a call is exercised.

Galapagos Option Chain

When Galapagos' strike price is surpassing the current stock price, the option contract against Galapagos NV ADR stock is said to be in the money. When it comes to buying options that are ITM or OTM, the choice depends on your outlook for the underlying security, financial situation, and what you are trying to achieve.
Galapagos' option chain is a display of a range of information that helps investors for ways to trade options on Galapagos. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Galapagos. It also shows strike prices and maturity days for a Galapagos against a given expiration period. The table below combines all the option information in the form of a chain but before you use it, remember that it entails significant risk and it is not for everyone.
Open IntExpirationCurrent SpreadLast Price
Call
GLPG Option Call 20-12-2024 2012024-12-204.5 - 9.37.25In
Call
GLPG Option Call 20-12-2024 27222024-12-200.1 - 0.40.75Out
Call
GLPG Option Call 20-12-2024 30522024-12-200.0 - 1.00.2Out
Call
GLPG Option Call 20-12-2024 3202024-12-200.0 - 0.00.75Out
Call
GLPG Option Call 20-12-2024 352002024-12-200.0 - 0.050.15Out
 Put
GLPG Option Put 20-12-2024 253832024-12-200.0 - 0.150.14Out
 Put
GLPG Option Put 20-12-2024 271112024-12-200.0 - 4.91.25In

Galapagos Selling And Marketing Expenses Over Time

   Selling And Marketing Expenses   
       Timeline  

Galapagos Market Cap Over Time

   Market Cap   
       Timeline  

Galapagos Total Stockholder Equity

Total Stockholder Equity

2.94 Billion

At this time, Galapagos' Total Stockholder Equity is most likely to increase significantly in the upcoming years.

Galapagos Corporate Management

Andre HoekemaSr. VP of Corporate Devel.Profile
John MontanaManaging ArgentaProfile
Walid AbiSaabMember of the Executive Committee, Chief Medical OfficerProfile
Marieke VermeerschHead CommunicationProfile
Patrik RingblomHead LeadProfile
Ellen AarHead DevelopmentProfile
When determining whether Galapagos NV ADR is a strong investment it is important to analyze Galapagos' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Galapagos' future performance. For an informed investment choice regarding Galapagos Stock, refer to the following important reports:
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Galapagos NV ADR. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in american community survey.
You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Is Biotechnology space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Galapagos. If investors know Galapagos will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Galapagos listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.748
Earnings Share
(0.97)
Revenue Per Share
0.1977
Quarterly Revenue Growth
(0.50)
Return On Assets
(0.02)
The market value of Galapagos NV ADR is measured differently than its book value, which is the value of Galapagos that is recorded on the company's balance sheet. Investors also form their own opinion of Galapagos' value that differs from its market value or its book value, called intrinsic value, which is Galapagos' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Galapagos' market value can be influenced by many factors that don't directly affect Galapagos' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Galapagos' value and its price as these two are different measures arrived at by different means. Investors typically determine if Galapagos is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Galapagos' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.