ZLAB250919P00040000 Option on Zai Lab

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 Zai Lab 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 Zai Stock have intrinsic value and are priced higher than out-of-the-money options in the same chain, their volatilities are relatively smaller.

Zai Lab's Option Greeks for the contract ending on 2025-09-19 at a strike price of 40.0 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 Zai Lab's option greeks, its implied volatility helps estimate the risk of Zai Lab stock implied by the prices of the options on Zai Lab's stock.

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

By selling Zai Lab's put option, the investors signal their bearish sentiment. A short position in a put option written on Zai Lab will generally make money when the underlying price is above the strike price. Therefore Zai Lab's put payoff at expiration depends on where the Zai Stock price is relative to the put option strike price. The breakeven price of 34.75 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 Zai Lab's price. Finally, at the strike price of 40.0, the payoff chart is constant and positive.

Zai Lab's option chain is a display of a range of information that helps investors for ways to trade options on Zai. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Zai. It also shows strike prices and maturity days for a Zai Lab 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 Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Zai Lab. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. For information on how to trade Zai Stock refer to our How to Trade Zai Stock guide.You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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