AXSM250919P00130000 Option on Axsome Therapeutics

An 'In The Money' option is one with a strike price that the current stock price has already surpassed. Some options investors can hedge their Axsome Therapeutics positions using in-the-money options. They may also want to buy options with some intrinsic value, not just time value. However, because in-the-money options on Axsome Stock have intrinsic value and are priced higher than out-of-the-money options in the same chain, their volatilities are relatively smaller.

Axsome Therapeutics' Option Greeks for the contract ending on 2025-09-19 at a strike price of 130.0 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 Axsome Therapeutics' option greeks, its implied volatility helps estimate the risk of Axsome Therapeutics stock implied by the prices of the options on Axsome Therapeutics' stock.

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

By selling Axsome Therapeutics' put option, the investors signal their bearish sentiment. A short position in a put option written on Axsome Therapeutics will generally make money when the underlying price is above the strike price. Therefore Axsome Therapeutics' put payoff at expiration depends on where the Axsome Stock price is relative to the put option strike price. The breakeven price of 110.2 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 Axsome Therapeutics' price. Finally, at the strike price of 130.0, the payoff chart is constant and positive.

Axsome Therapeutics' option chain is a display of a range of information that helps investors for ways to trade options on Axsome. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Axsome. It also shows strike prices and maturity days for a Axsome Therapeutics 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 Axsome Therapeutics. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state. To learn how to invest in Axsome Stock, please use our How to Invest in Axsome Therapeutics guide.You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.

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