VSTM250321P00004000 Option on Verastem

VSTM Stock  USD 5.68  0.11  1.97%   
VSTM250321P00004000 is a PUT option contract on Verastem's common stock with a strick price of 4.0 expiring on 2025-03-21. The contract was not traded in recent days and, as of today, has 26 days remaining before the expiration. The option is currently trading at an ask price of $0.55. The implied volatility as of the 23rd of February is 26.0.
  
When exercised, put options on Verastem produce a short position in Verastem Stock. Because of this protective nature, they are typically used either for hedging purposes or to capitalize on Verastem's downside price movement.

Rule 16 of 2025-03-21 Option Contract

The options market is anticipating that Verastem will have an average daily up or down price movement of about 0.11% per day over the life of the option. With Verastem trading at USD 5.68, that is roughly USD 0.006015. If you think that the market is fully understating Verastem's daily price movement you should consider buying Verastem options at that current volatility level of 1.69%. But if you have an opposite viewpoint you should avoid it and even consider selling them.

Out Of The Money Put Option on Verastem

An 'Out of The Money' option on Verastem has a strike price that Verastem Stock has yet to reach, meaning the option has no intrinsic value. 'Out of The Money' options are usually less costly than 'In The Money' options, making them more desirable to traders with smaller amounts of capital. Some of the uses for Verastem's 'Out of The Money' options include buying the options if you expect a big move in Verastem's stock. Since 'Out of The Money' options have a lower up-front cost (i.e., no intrinsic value) than 'In The Money' options, buying it is a reasonable choice.
Put Contract NameVSTM250321P00004000
Expires On2025-03-21
Days Before Expriration26
Vega0.003747
Gamma0.092724
Theoretical Value0.28
Open Interest16
Strike Price4.0
Last Traded At0.31
Current Price Spread0.0 | 0.55
Rule 16 Daily Up or DownUSD 0.006015

Verastem short PUT Option Greeks

Verastem's Option Greeks for the contract ending on 2025-03-21 at a strike price of 4.0 measures the various factors that affect its cost and calculated using a theoretical options pricing model. It helps investors make more informed decisions about whether to trade this option contract or when to trade it. In addition to Verastem's option greeks, its implied volatility helps estimate the risk of Verastem stock implied by the prices of the options on Verastem's stock.
Delta-0.159266
Gamma0.092724
Theta-0.011633
Vega0.003747
Rho-7.89E-4

Verastem long PUT Option Payoff at expiration

Put options written on Verastem grant holders of the option the right to sell a specified amount of Verastem at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Verastem Stock cannot fall below zero, the put buyer does gain as the price drops. So, purchasing a put option on Verastem is like buying insurance aginst Verastem's downside shift.
   Profit   
Break Even 3.72Strike Price 4Current Price 5.68100%
       Verastem Price At Expiration  

Verastem short PUT Option Payoff at expiration

By selling Verastem's put option, the investors signal their bearish sentiment. A short position in a put option written on Verastem will generally make money when the underlying price is above the strike price. Therefore Verastem's put payoff at expiration depends on where the Verastem Stock price is relative to the put option strike price. The breakeven price of 3.72 is the critical point that divides the payoff function into two parts. Below the breakeven price, the payoff is dropping and negative (the seller makes a loss). Above the breakeven price, the payoff line is upward sloping as the option payoff increases in proportion to Verastem's price. Finally, at the strike price of 4.0, the payoff chart is constant and positive.
   Profit   
Break Even 3.72Strike Price 4Current Price 5.68100%
       Verastem Price At Expiration  
View All Verastem Options

Verastem Available Put Options

Verastem's option chain is a display of a range of information that helps investors for ways to trade options on Verastem. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Verastem. It also shows strike prices and maturity days for a Verastem 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 IntStrike PriceCurrent SpreadLast Price
 Put
VSTM250417P0000300003.00.0 - 0.50.5Out
 Put
VSTM250417P0000400004.00.0 - 0.350.35Out
 Put
VSTM250417P0000500005.00.0 - 0.750.75Out
 Put
VSTM250417P0000600006.00.0 - 2.152.15In
 Put
VSTM250417P0000700007.01.5 - 2.11.5In
 Put
VSTM250417P0000800008.02.2 - 2.852.2In
 Put
VSTM250417P0000900009.03.2 - 4.83.2In
 Put
VSTM250417P00010000010.04.2 - 5.44.2In
 Put
VSTM250417P00011000011.05.1 - 6.65.1In
 Put
VSTM250417P00012000012.04.8 - 8.44.8In

Verastem Corporate Management

When determining whether Verastem is a strong investment it is important to analyze Verastem's 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 Verastem's future performance. For an informed investment choice regarding Verastem Stock, refer to the following important reports:
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Verastem. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate.
To learn how to invest in Verastem Stock, please use our How to Invest in Verastem guide.
You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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 Verastem. If investors know Verastem 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 Verastem listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(3.14)
Revenue Per Share
0.331
Quarterly Revenue Growth
(1.00)
Return On Assets
(0.47)
Return On Equity
(1.37)
The market value of Verastem is measured differently than its book value, which is the value of Verastem that is recorded on the company's balance sheet. Investors also form their own opinion of Verastem's value that differs from its market value or its book value, called intrinsic value, which is Verastem's 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 Verastem's market value can be influenced by many factors that don't directly affect Verastem's 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 Verastem's value and its price as these two are different measures arrived at by different means. Investors typically determine if Verastem is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Verastem's 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.

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