VRDN Bear Put Spread Strategy
VRDN (Viridian Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Viridian Therapeutics, Inc., a biotechnology company, develops treatments for patients suffering from serious diseases. It develops VRDN-001, a humanized monoclonal anti-IGF-1R antibody that is in Phase 1/2 clinical trial for the treatment of thyroid eye disease (TED); VRDN-002, an IGF-1R antibody, which is in Phase 1 clinical trial; and VRDN-003, a therapeutic antibody targeting IGF-1R for the treatment of TED. The company was formerly known as Miragen Therapeutics, Inc. and changed its name to Viridian Therapeutics, Inc. in January 2021. Viridian Therapeutics, Inc. was founded in 2006 and is headquartered in Waltham, Massachusetts.
VRDN (Viridian Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.45B, a beta of 0.82 versus the broader market, a 52-week range of 12.133-34.29, average daily share volume of 2.8M, a public-listing history dating back to 2014, approximately 143 full-time employees. These structural characteristics shape how VRDN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.82 places VRDN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a bear put spread on VRDN?
A bear put spread buys an at-the-money put and sells an out-of-the-money put at a lower strike for defined risk and defined reward bounded by the strike width.
Current VRDN snapshot
As of May 15, 2026, spot at $16.80, ATM IV 67.90%, IV rank 9.76%, expected move 19.47%. The bear put spread on VRDN 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 63-day expiry.
Why this bear put spread structure on VRDN specifically: VRDN IV at 67.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a VRDN bear put spread, with a market-implied 1-standard-deviation move of approximately 19.47% (roughly $3.27 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated VRDN expiries trade a higher absolute premium for lower per-day decay. Position sizing on VRDN should anchor to the underlying notional of $16.80 per share and to the trader's directional view on VRDN stock.
VRDN bear put spread setup
The VRDN bear put spread below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With VRDN near $16.80, the first option leg uses a $17.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VRDN chain at a 63-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 VRDN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $17.00 | $3.20 |
| Sell 1 | Put | $16.00 | $1.75 |
VRDN bear put spread risk and reward
- Net Premium / Debit
- -$145.00
- Max Profit (per contract)
- -$45.00
- Max Loss (per contract)
- -$145.00
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- -0.310
Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-put strike minus net debit.
VRDN bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on VRDN. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -99.9% | -$45.00 |
| $3.72 | -77.8% | -$45.00 |
| $7.44 | -55.7% | -$45.00 |
| $11.15 | -33.6% | -$45.00 |
| $14.86 | -11.5% | -$45.00 |
| $18.58 | +10.6% | -$145.00 |
| $22.29 | +32.7% | -$145.00 |
| $26.00 | +54.8% | -$145.00 |
| $29.72 | +76.9% | -$145.00 |
| $33.43 | +99.0% | -$145.00 |
When traders use bear put spread on VRDN
Bear put spreads on VRDN reduce the cost of a bearish VRDN stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
VRDN thesis for this bear put spread
The market-implied 1-standard-deviation range for VRDN extends from approximately $13.53 on the downside to $20.07 on the upside. A VRDN bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on VRDN, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current VRDN IV rank near 9.76% 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 VRDN at 67.90%. As a Healthcare name, VRDN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VRDN-specific events.
VRDN bear put spread positions are structurally moderately 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. VRDN positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move VRDN alongside the broader basket even when VRDN-specific fundamentals are unchanged. Long-premium structures like a bear put spread on VRDN 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 VRDN chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on VRDN?
- A bear put spread on VRDN is the bear put spread strategy applied to VRDN (stock). The strategy is structurally moderately bearish: A bear put spread buys an at-the-money put and sells an out-of-the-money put at a lower strike for defined risk and defined reward bounded by the strike width. With VRDN stock trading near $16.80, the strikes shown on this page are snapped to the nearest listed VRDN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are VRDN bear put spread max profit and max loss calculated?
- Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-put strike minus net debit. For the VRDN bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 67.90%), the computed maximum profit is -$45.00 per contract and the computed maximum loss is -$145.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a VRDN bear put spread?
- The breakeven for the VRDN bear put spread 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 VRDN market-implied 1-standard-deviation expected move is approximately 19.47%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a bear put spread on VRDN?
- Bear put spreads on VRDN reduce the cost of a bearish VRDN stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
- How does current VRDN implied volatility affect this bear put spread?
- VRDN ATM IV is at 67.90% with IV rank near 9.76%, 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.