VRDN Long Call 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 long call on VRDN?
A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration.
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 long call 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 long call 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 long call, 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 long call setup
The VRDN long call 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 | Call | $17.00 | $2.15 |
VRDN long call risk and reward
- Net Premium / Debit
- -$215.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$215.00
- Breakeven(s)
- $19.15
- Risk / Reward Ratio
- Unbounded
Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium.
VRDN long call payoff curve
Modeled P&L at expiration across a range of underlying prices for the long call 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% | -$215.00 |
| $3.72 | -77.8% | -$215.00 |
| $7.44 | -55.7% | -$215.00 |
| $11.15 | -33.6% | -$215.00 |
| $14.86 | -11.5% | -$215.00 |
| $18.58 | +10.6% | -$57.27 |
| $22.29 | +32.7% | +$314.08 |
| $26.00 | +54.8% | +$685.43 |
| $29.72 | +76.9% | +$1,056.77 |
| $33.43 | +99.0% | +$1,428.12 |
When traders use long call on VRDN
Long calls on VRDN express a bullish thesis with defined risk; traders use them ahead of VRDN catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
VRDN thesis for this long call
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 long call expresses a directional view that the underlying closes above the strike plus premium at expiration, ideally with implied volatility holding or expanding to preserve extrinsic value through the hold period. 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 long call positions are structurally bullish; 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 long call 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 long call on VRDN?
- A long call on VRDN is the long call strategy applied to VRDN (stock). The strategy is structurally bullish: A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration. 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 long call max profit and max loss calculated?
- Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium. For the VRDN long call priced from the end-of-day chain at a 30-day expiry (ATM IV 67.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$215.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a VRDN long call?
- The breakeven for the VRDN long call priced on this page is roughly $19.15 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 long call on VRDN?
- Long calls on VRDN express a bullish thesis with defined risk; traders use them ahead of VRDN catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
- How does current VRDN implied volatility affect this long call?
- 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.