ERAS Long Put Strategy
ERAS (Erasca, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Erasca, Inc. is a biopharmaceutical company in the clinical development stage, primarily focused on identifying, advancing, and commercializing therapeutic solutions for malignancies propelled by the RAS/MAPK pathway. The firm's pipeline features several key experimental drugs: ERAS-007, an orally administered ERK1/2 inhibitor designed to address non-small cell lung cancer, colorectal cancer, and acute myeloid leukemia; and ERAS-601, an oral SHP2 inhibitor targeting patients with advanced or metastatic solid tumors. Additionally, Erasca is progressing ERAS-801, an EGFR inhibitor capable of penetrating the central nervous system, intended for recurrent glioblastoma multiforme. The company was founded in 2018 and maintains its headquarters in San Diego, California.
ERAS (Erasca, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $6.38B, a beta of 0.65 versus the broader market, a 52-week range of 1.33-24.28, average daily share volume of 6.1M, a public-listing history dating back to 2021, approximately 103 full-time employees. These structural characteristics shape how ERAS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.65 indicates ERAS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a long put on ERAS?
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.
ERAS snapshot
As of August 14, 2026, spot at $18.26, ATM IV 99.40%, IV rank 18.11%, expected move 28.50%. The long put on ERAS below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this long put structure on ERAS specifically: ERAS IV at 99.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a ERAS long put, with a market-implied 1-standard-deviation move of approximately 28.50% (roughly $5.20 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ERAS expiries trade a higher absolute premium for lower per-day decay. Position sizing on ERAS should anchor to the underlying notional of $18.26 per share and to the trader's directional view on ERAS stock.
ERAS long put setup
The ERAS 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 ERAS at $18.26 on that close, the first option leg uses a $18.26 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ERAS chain at a 35-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 ERAS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $18.26 | N/A |
ERAS 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.
ERAS long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on ERAS. 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 ERAS
Long puts on ERAS hedge an existing long ERAS stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying ERAS exposure being hedged.
ERAS thesis for this long put
The market-implied 1-standard-deviation range for ERAS extends from approximately $13.06 on the downside to $23.46 on the upside. A ERAS long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long ERAS position with one put per 100 shares held. Current ERAS IV rank near 18.11% 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 ERAS at 99.40%. As a Healthcare name, ERAS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ERAS-specific events.
ERAS 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. ERAS positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ERAS alongside the broader basket even when ERAS-specific fundamentals are unchanged. Long-premium structures like a long put on ERAS 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 ERAS chain quotes before placing a trade.
Frequently asked questions
- What is a long put on ERAS?
- A long put on ERAS is the long put strategy applied to ERAS (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 ERAS stock at $18.26 on the most recent close, the strikes shown on this page are snapped to the nearest listed ERAS chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are ERAS 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 ERAS long put priced from the end-of-day chain at a 30-day expiry (ATM IV 99.40%), 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 ERAS long put?
- The breakeven for the ERAS long put priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The ERAS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 28.50%; 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 ERAS?
- Long puts on ERAS hedge an existing long ERAS stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying ERAS exposure being hedged.
- How does current ERAS implied volatility affect this long put?
- ERAS ATM IV is at 99.40% with IV rank near 18.11%, 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.