AGIO251017P00020000 Option on Agios Pharm

An 'Out of The Money' option on Agios has a strike price that Agios 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 Agios Pharm's 'Out of The Money' options include buying the options if you expect a big move in Agios Pharm'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.

Agios Pharm's Option Greeks for the contract ending on 2025-10-17 at a strike price of 20.0 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 Agios Pharm's option greeks, its implied volatility helps estimate the risk of Agios Pharm stock implied by the prices of the options on Agios Pharm's stock.

Put options written on Agios Pharm grant holders of the option the right to sell a specified amount of Agios Pharm 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 Agios Stock cannot fall below zero, the put buyer does gain as the price drops. So, purchasing a put option on Agios Pharm is like buying insurance aginst Agios Pharm's downside shift.

By selling Agios Pharm's put option, the investors signal their bearish sentiment. A short position in a put option written on Agios Pharm will generally make money when the underlying price is above the strike price. Therefore Agios Pharm's put payoff at expiration depends on where the Agios Stock price is relative to the put option strike price. The breakeven price of 18.67 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 Agios Pharm's price. Finally, at the strike price of 20.0, the payoff chart is constant and positive.

Agios Pharm's option chain is a display of a range of information that helps investors for ways to trade options on Agios. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Agios. It also shows strike prices and maturity days for a Agios Pharm 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.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Agios Pharm. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product. To learn how to invest in Agios Stock, please use our How to Invest in Agios Pharm guide.You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

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 Agios Pharm. If investors know Agios 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 Agios Pharm listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

The market value of Agios Pharm is measured differently than its book value, which is the value of Agios that is recorded on the company's balance sheet. Investors also form their own opinion of Agios Pharm's value that differs from its market value or its book value, called intrinsic value, which is Agios Pharm'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 Agios Pharm's market value can be influenced by many factors that don't directly affect Agios Pharm'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 Agios Pharm's value and its price as these two are different measures arrived at by different means. Investors typically determine if Agios Pharm is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Agios Pharm'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.