ELDN Long Put Strategy
ELDN (Eledon Pharmaceuticals, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Eledon Pharmaceuticals, Inc., clinical stage biopharmaceutical company, focuses on developing medicines for the patients living with autoimmune disease and amyotrophic lateral sclerosis (ALS), and requiring an organ or cell-based transplant. Its lead product candidate includes AT-1501, a humanized monoclonal antibody to target CD40 Ligand that is a molecule expressed on the surface of human immune system T cells, which is in Phase 2a clinical trials for the treatment of ALS, and Phase 2 clinical trials in islet cell transplantation for the treatment of type 1 diabetes. The company was formerly known as Novus Therapeutics, Inc. and changed its name to Eledon Pharmaceuticals, Inc. in January 2021. Eledon Pharmaceuticals, Inc. is headquartered in Irvine, California.
ELDN (Eledon Pharmaceuticals, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $232.6M, a beta of 0.95 versus the broader market, a 52-week range of 1.35-4.6, average daily share volume of 1.5M, a public-listing history dating back to 2014, approximately 31 full-time employees. These structural characteristics shape how ELDN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.95 places ELDN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a long put on ELDN?
A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration.
Current ELDN snapshot
As of May 15, 2026, spot at $3.79, ATM IV 82.10%, IV rank 13.38%, expected move 23.54%. The long put on ELDN below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 34-day expiry.
Why this long put structure on ELDN specifically: ELDN IV at 82.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a ELDN long put, with a market-implied 1-standard-deviation move of approximately 23.54% (roughly $0.89 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ELDN expiries trade a higher absolute premium for lower per-day decay. Position sizing on ELDN should anchor to the underlying notional of $3.79 per share and to the trader's directional view on ELDN stock.
ELDN long put setup
The ELDN long put below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With ELDN near $3.79, the first option leg uses a $3.79 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ELDN chain at a 34-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 ELDN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $3.79 | N/A |
ELDN long put risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
ELDN long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on ELDN. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
When traders use long put on ELDN
Long puts on ELDN hedge an existing long ELDN stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying ELDN exposure being hedged.
ELDN thesis for this long put
The market-implied 1-standard-deviation range for ELDN extends from approximately $2.90 on the downside to $4.68 on the upside. A ELDN long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long ELDN position with one put per 100 shares held. Current ELDN IV rank near 13.38% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on ELDN at 82.10%. As a Healthcare name, ELDN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ELDN-specific events.
ELDN long put positions are structurally bearish; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. ELDN positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ELDN alongside the broader basket even when ELDN-specific fundamentals are unchanged. Long-premium structures like a long put on ELDN are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current ELDN chain quotes before placing a trade.
Frequently asked questions
- What is a long put on ELDN?
- A long put on ELDN is the long put strategy applied to ELDN (stock). The strategy is structurally bearish: A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration. With ELDN stock trading near $3.79, the strikes shown on this page are snapped to the nearest listed ELDN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ELDN long put max profit and max loss calculated?
- Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium. For the ELDN long put priced from the end-of-day chain at a 30-day expiry (ATM IV 82.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ELDN long put?
- The breakeven for the ELDN long put priced on this page is no defined breakeven on the modeled curve at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current ELDN market-implied 1-standard-deviation expected move is approximately 23.54%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a long put on ELDN?
- Long puts on ELDN hedge an existing long ELDN stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying ELDN exposure being hedged.
- How does current ELDN implied volatility affect this long put?
- ELDN ATM IV is at 82.10% with IV rank near 13.38%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.