Erasca Offers $7.50 Put Option, Attracting Investor Interest
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 16 2026
0mins
Should l Buy ERAS?
Source: NASDAQ.COM
- Put Option Appeal: Erasca's $7.50 put option currently bids at $0.40, allowing investors to commit to buying shares at $7.50, effectively lowering their cost basis to $7.10, representing a 22% discount from the current price of $9.56, making it attractive for potential buyers.
- Return Potential Analysis: Should the put option expire worthless, investors could realize a 5.33% cash return, annualized at 30.92%, highlighting the strategy's appeal in the current market environment.
- Call Option Opportunity: Concurrently, the $10.00 call option bids at $1.50, and if investors buy shares at $9.56 and sell this call, they could achieve a total return of 20.29% if exercised, showcasing the profit potential of this strategy.
- Volatility Comparison: The implied volatility for the put option is 124%, while for the call option it is 135%, compared to a trailing twelve-month actual volatility of 95%, indicating a high market expectation for future fluctuations in Erasca's stock, necessitating careful risk assessment by investors.
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Analyst Views on ERAS
Wall Street analysts forecast ERAS stock price to fall
8 Analyst Rating
6 Buy
1 Hold
1 Sell
Moderate Buy
Current: 12.310
Low
2.00
Averages
5.50
High
11.00
Current: 12.310
Low
2.00
Averages
5.50
High
11.00
About ERAS
Erasca, Inc. is a clinical-stage precision oncology company. The Company is focused on discovering, developing, and commercializing therapies for patients with RAS/MAPK pathway-driven cancers. The Company has assembled RAS/MAPK pathway-focused pipeline in the industry, consisting of modality-agnostic programs aligned with its three therapeutic strategies of: targeting key upstream and downstream signaling nodes in the RAS/MAPK pathway; targeting RAS directly; and targeting escape routes that emerge in response to treatment. Its pipeline includes one clinical-stage program (a pan-RAF inhibitor), two IND-enabling stage programs (a pan-RAS molecular glue and a pan-KRAS inhibitor), and an additional discovery-stage program (an EGFR D2/D3 biparatopic antibody). Its lead product candidate is naporafenib, the Company initiated its SEACRAFT-2 pivotal Phase III trial for patients with NRAS-mutated (NRASm) melanoma.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Erasca Stock Declines Without News Justification
- Stock Decline: Erasca Inc. (NASDAQ:ERAS) shares fell 7.13% to $9.25 on Monday, despite no news justifying the decline, indicating market concerns about its future performance.
- 52-Week Range: The stock is trading near the upper end of its 52-week range of $1.01 to $10.67, reflecting investor apprehension regarding its volatility and potential risks, which could impact its fundraising capabilities and market confidence.
- Acquisition Talks End: Merck & Co. (NYSE:MRK) reportedly ended discussions to acquire Revolution Medicines (NASDAQ:RVMD) due to valuation disagreements, raising concerns about future M&A activities in the oncology sector.
- Funding Plans: Last week, Erasca priced an upsized public offering of 22.5 million shares at $10.00 each, aiming to raise $225 million to fund R&D and other corporate purposes, although the current stock decline may affect its financing outlook.
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- Clear Use of Proceeds: The net proceeds from this offering will fund the research and development of product candidates and other development programs, while also supporting working capital and general corporate purposes, enhancing the company's financial flexibility.
- Strong Underwriting Team: J.P. Morgan, Morgan Stanley, Jefferies, and Evercore ISI acted as joint book-running managers for the offering, reflecting market confidence in Erasca and its influence in the capital markets.
- Regulatory Compliance: The offering was conducted under a shelf registration statement on Form S-3 that became effective on August 22, 2025, ensuring compliance and providing transparent disclosures to investors, thereby reducing investment risks.
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- Underwriter's Option: The underwriters have a 30-day option to purchase an additional 3.375 million shares, which, if exercised, would further enhance Erasca's liquidity and market confidence.
- Clear Use of Proceeds: The funds raised will support the research and development of product candidates and other development programs, as well as working capital and general corporate purposes, ensuring the company's sustained growth during its clinical stage.
- Closing Timeline: The offering is expected to close on January 23, 2026, marking a significant step in Erasca's capital market strategy and laying the groundwork for future business expansion.
See More
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- Stock Decline: Erasca Inc. (NASDAQ:ERAS) shares fell 7.13% to $9.25 on Monday, despite no news justifying the decline, indicating market concerns about its future performance.
- 52-Week Range: The stock is trading near the upper end of its 52-week range of $1.01 to $10.67, reflecting investor apprehension regarding its volatility and potential risks, which could impact its fundraising capabilities and market confidence.
- Acquisition Talks End: Merck & Co. (NYSE:MRK) reportedly ended discussions to acquire Revolution Medicines (NASDAQ:RVMD) due to valuation disagreements, raising concerns about future M&A activities in the oncology sector.
- Funding Plans: Last week, Erasca priced an upsized public offering of 22.5 million shares at $10.00 each, aiming to raise $225 million to fund R&D and other corporate purposes, although the current stock decline may affect its financing outlook.
See More
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- Earnings Beat: Intuitive Surgical reported Q4 revenue of approximately $2.87 billion and adjusted earnings of $2.53 per share, both exceeding analyst expectations, driven by year-over-year growth in procedure volume and robotic system placements, leading to a rise in after-hours trading.
- Dividend Increase: Kinder Morgan topped Q4 revenue expectations with about $4.51 billion and adjusted earnings of $0.39 per share, while announcing a 2% quarterly dividend increase to $0.2925 per share, despite slightly lowering its 2026 earnings outlook, reflecting cautious sentiment amid ongoing energy market dynamics.
- Expansion Plans: USA Rare Earth announced plans to establish a high-capacity metal and alloy production plant in Lacq, France, capable of producing about 3,750 metric tons per year through its subsidiary Less Common Metals, aimed at strengthening transatlantic supply chains and boosting investor optimism.
- Market Volatility: Despite subdued overall market performance, small-cap benchmarks reached new highs, indicating sustained investor demand for risk assets against a backdrop of easing geopolitical tensions, which positively influenced the performance of certain tech stocks.
See More
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- Upsized Offering: Erasca successfully closed an upsized public offering of 25,875,000 shares of common stock, including 3,375,000 shares sold due to underwriters' full exercise of their purchase option, indicating strong market demand for its shares.
- Clear Use of Proceeds: The net proceeds from this offering will fund the research and development of product candidates and other development programs, while also supporting working capital and general corporate purposes, enhancing the company's financial flexibility.
- Strong Underwriting Team: J.P. Morgan, Morgan Stanley, Jefferies, and Evercore ISI acted as joint book-running managers for the offering, reflecting market confidence in Erasca and its influence in the capital markets.
- Regulatory Compliance: The offering was conducted under a shelf registration statement on Form S-3 that became effective on August 22, 2025, ensuring compliance and providing transparent disclosures to investors, thereby reducing investment risks.
See More
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- Stock Surge: Namib Minerals' stock surged 334% over the past five days, closing at $4.15 on Thursday, indicating strong market momentum that may attract more investor interest.
- Overbought RSI: The company's current Relative Strength Index (RSI) stands at 92.4, significantly above the 70 overbought threshold, warning investors of potential short-term pullback risks.
- Strategic Growth Plans: CEO Ibrahima Sory Tall emphasized the company's commitment to becoming a multi-asset mid-tier producer through operational optimization and the disciplined restart of the Mazowe and Redwing mines, showcasing long-term growth potential.
- Strong Performance from Hycroft Mining: Hycroft Mining's stock rose 90% over the past month with an RSI of 81.7, indicating robust market performance that may also attract investor attention.
See More
RF Industries and Ultra Clean Holdings Surge, RSI Overbought Warning
- RF Industries Earnings Report: On January 14, RF Industries reported Q4 net sales of $22.7 million, a 23% year-over-year increase, with CEO highlighting operational leverage from strategic transformation; however, the stock's RSI at 90.9 indicates overbought conditions despite an 82% surge in five days.
- Stock Performance: RF Industries' shares rose 10% to close at $11.99 on Wednesday, with a 52-week high of $12.12, prompting caution among investors regarding potential pullback risks despite strong short-term performance.
- Ultra Clean Holdings Analyst Rating: On January 20, Needham analyst Charles Shi maintained a Buy rating on Ultra Clean Holdings, raising the price target from $35 to $50, with the stock gaining 82% over the past month and an RSI of 89.8 indicating overbought status.
- Market Reaction: Ultra Clean Holdings' shares increased by 6.6% to close at $47.20 on Wednesday, nearing its 52-week high of $47.22, suggesting investors should monitor future market performance and potential adjustment risks.
See More
Erasca (ERAS) Prices Upsized Public Offering of 22.5M Shares at $10.00 Each, Raising $225M
- Upsized Offering: Erasca has priced an upsized public offering of 22.5 million shares at $10.00 each, raising gross proceeds of $225 million, significantly bolstering the company's financial resources for future R&D initiatives.
- Underwriter's Option: The underwriters have a 30-day option to purchase an additional 3.375 million shares, which, if exercised, would further enhance Erasca's liquidity and market confidence.
- Clear Use of Proceeds: The funds raised will support the research and development of product candidates and other development programs, as well as working capital and general corporate purposes, ensuring the company's sustained growth during its clinical stage.
- Closing Timeline: The offering is expected to close on January 23, 2026, marking a significant step in Erasca's capital market strategy and laying the groundwork for future business expansion.
See More
