2024-06-07 CALL at $16.0 Option on American Airlines
| AAL Stock | USD 11.50 0.06 0.52% |
2024-06-07 CALL at $16.0 is a CALL option contract on American Airlines' common stock with a strick price of 16.0 expiring on 2024-06-07. The contract was last traded on 2024-05-31 at 15:31:00 for $0.01 and, as of today, has 4 days remaining before the expiration. The option is currently trading at a bid price of $0.0, and an ask price of $0.09. The implied volatility as of the 3rd of June is 117.08.
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Airlines Group. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.
American |
Call options on American Airlines give the investor right to buy American Stock at a specified price within a specific period. The strike price represents the predetermined price at which a call buyer can buy American Stock. Call options may be purchased for speculation or sold for income purposes, or simply combined for various spread or combination strategies. If American Airlines' price is above the strike price at expiry, the profit is the current American Airlines' stock price, minus the strike price and the premium.
Rule 16 of 2024-06-07 Option Contract
The options market is anticipating that American Airlines Group will have an average daily up or down price movement of about 7.32% per day over the life of the option. With American Airlines trading at USD 11.5, that is roughly USD 0.84. If you think that the market is fully understating American Airlines' daily price movement you should consider buying American Airlines Group options at that current volatility level of 117.08%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
Out Of The Money Call Option on American Airlines
An 'Out of The Money' option on American has a strike price that American Stock has yet to reach, meaning the option has no intrinsic value. 'Out of The Money' options are usually less costly than 'In The Money' options, making them more desirable to traders with smaller amounts of capital. Some of the uses for American Airlines' 'Out of The Money' options include buying the options if you expect a big move in American Airlines' stock. Since 'Out of The Money' options have a lower up-front cost (i.e., no intrinsic value) than 'In The Money' options, buying it is a reasonable choice.
| Call Contract Name | 2024-06-07 CALL at $16.0 |
| Expires On | 2024-06-07 |
| Days Before Expriration | 4 |
| Last Traded On | 2024-05-31 15:31:00 |
| Contract Period | WEEKLY |
| Open Interest | 1258 |
| Current Trading Volume | 3.0 |
| Strike Price | 16.0 |
| Last Traded At | 0.01 |
| Current Price Spread | 0.0 | 0.09 |
| Rule 16 Daily Up or Down | USD0.84 |
American short CALL Option Greeks
American Airlines' Option Greeks for the contract ending on 2024-06-07 at a strike price of 16.0 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 American Airlines' option greeks, its implied volatility helps estimate the risk of American Airlines stock implied by the prices of the options on American Airlines' stock.
| Delta | 0.0169 | |
| Gamma | 0.0243 | |
| Theta | -0.006 | |
| Vega | 6.0E-4 |
American long CALL Option Payoff at expiration
Buying American Airlines' call option is the simplest of option trades. A call option on American Stock gives investors the right (but not the obligation) to purchase American Airlines at the given strike price. Therefore American Airlines' call intrinsic value or payoff at expiration depends on where the American Stock price is relative to the call option strike price. The strike price of 16.0 is the critical point that divides the payoff function into two parts. Below the strike, the payoff chart is constant and negative (the trade is a loss). Above the strike, the payoff line is upward sloping as the option payoff rises in proportion with American Airlines' price. Finally, at the break-even point of 16.01, the line crosses zero, and trading American becomes profitable.
Profit |
| American Airlines Price At Expiration |
American short CALL Option Payoff at expiration
By selling American Airlines' call option, the investors signals his or her bearish sentiment. A short position in a call option written on American Airlines will generally make money when the underlying price goes down. Therefore American Airlines' call intrinsic value or payoff at expiration depends on where the American Stock price is relative to the call option strike price. The strike price of 16.0 is the critical point that divides the payoff function into two parts. Below the strike, the payoff chart is constant and positive (the seller makes a profit). Above the strike, the payoff line is downward sloping as the option payoff drops in proportion to American Airlines' price. Finally, at the break-even point of 16.01, the line crosses zero, and trading American becomes disadvantageous with no downside limits.
Profit |
| American Airlines Price At Expiration |
American Airlines Available Call Options
American Airlines' option chain is a display of a range of information that helps investors for ways to trade options on American. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for American. It also shows strike prices and maturity days for a American Airlines 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.
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Call | 2024-06-07 CALL at $2.5 | 0.9732 | 0.0048 | 0 | 2024-06-07 | 7.35 - 11.05 | 9.87 | In |
Call | 2024-06-07 CALL at $5.0 | 0.9454 | 0.0147 | 0 | 2024-06-07 | 5.0 - 8.45 | 0.0 | In |
Call | 2024-06-07 CALL at $6.0 | 0.8948 | 0.0215 | 0 | 2024-06-07 | 4.65 - 7.55 | 0.0 | In |
Call | 2024-06-07 CALL at $7.0 | 0.8601 | 0.0292 | 1 | 2024-06-07 | 3.95 - 6.55 | 4.49 | In |
Call | 2024-06-07 CALL at $7.5 | 0.8328 | 0.0317 | 0 | 2024-06-07 | 3.95 - 6.05 | 0.0 | In |
Call | 2024-06-07 CALL at $8.0 | 0.8145 | 0.0375 | 0 | 2024-06-07 | 3.45 - 5.55 | 0.0 | In |
Call | 2024-06-07 CALL at $8.5 | 0.7981 | 0.0461 | 1 | 2024-06-07 | 2.87 - 4.95 | 3.0 | In |
Call | 2024-06-07 CALL at $9.0 | 0.8873 | 0.0746 | 1 | 2024-06-07 | 2.5 - 2.81 | 2.35 | In |
Call | 2024-06-07 CALL at $9.5 | 0.916 | 0.0912 | 0 | 2024-06-07 | 1.5 - 4.05 | 2.07 | In |
Call | 2024-06-07 CALL at $10.0 | 0.9166 | 0.1263 | 63 | 2024-06-07 | 1.48 - 2.6 | 1.55 | In |
Call | 2024-06-07 CALL at $10.5 | 0.8911 | 0.212 | 81 | 2024-06-07 | 0.98 - 1.6 | 1.05 | In |
Call | 2024-06-07 CALL at $11.0 | 0.7831 | 0.4296 | 1100 | 2024-06-07 | 0.57 - 0.6 | 0.59 | In |
Call | 2024-06-07 CALL at $11.5 | 0.5128 | 0.6401 | 6075 | 2024-06-07 | 0.25 - 0.26 | 0.25 | In |
Call | 2024-06-07 CALL at $12.0 | 0.2267 | 0.4813 | 5331 | 2024-06-07 | 0.08 - 0.09 | 0.08 | Out |
Call | 2024-06-07 CALL at $12.5 | 0.1113 | 0.2485 | 5095 | 2024-06-07 | 0.03 - 0.04 | 0.04 | Out |
Call | 2024-06-07 CALL at $13.0 | 0.0559 | 0.1303 | 4341 | 2024-06-07 | 0.01 - 0.03 | 0.02 | Out |
Call | 2024-06-07 CALL at $13.5 | 0.0283 | 0.0686 | 910 | 2024-06-07 | 0.01 - 0.02 | 0.01 | Out |
Call | 2024-06-07 CALL at $14.0 | 0.0408 | 0.0696 | 1166 | 2024-06-07 | 0.0 - 0.02 | 0.02 | Out |
Call | 2024-06-07 CALL at $14.5 | 0.0365 | 0.0557 | 1331 | 2024-06-07 | 0.0 - 0.02 | 0.02 | Out |
Call | 2024-06-07 CALL at $15.0 | 0.0197 | 0.0333 | 1643 | 2024-06-07 | 0.0 - 0.18 | 0.01 | Out |
Call | 2024-06-07 CALL at $15.5 | 0.0182 | 0.0281 | 1932 | 2024-06-07 | 0.0 - 0.12 | 0.01 | Out |
Call | 2024-06-07 CALL at $16.0 | 0.0169 | 0.0243 | 1258 | 2024-06-07 | 0.0 - 0.09 | 0.01 | Out |
Call | 2024-06-07 CALL at $22.0 | 0.0249 | 0.0165 | 0 | 2024-06-07 | 0.0 - 0.06 | 0.03 | Out |
Be your own money manager
Our tools can tell you how much better you can do entering a position in American Airlines without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.Did you try this?
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American Airlines Corporate Management
Elected by the shareholders, the American Airlines' board of directors comprises two types of representatives: American Airlines inside directors who are chosen from within the company, and outside directors, selected externally and held independent of American. The board's role is to monitor American Airlines' management team and ensure that shareholders' interests are well served. American Airlines' inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, American Airlines' outside directors are responsible for providing unbiased perspectives on the board's policies.
| Stephen Johnson | Executive VP of Corporate Affairs | Profile | |
| Scott Long | Managing Relations | Profile | |
| Mecole Brown | Senior Officer | Profile | |
| Ronald Defeo | Senior Officer | Profile | |
| Vasu Raja | Executive Officer | Profile |
Already Invested in American Airlines Group?
The danger of trading American Airlines Group is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of American Airlines is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than American Airlines. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile American Airlines is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether American Airlines is a strong investment it is important to analyze American Airlines' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact American Airlines' future performance. For an informed investment choice regarding American Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Airlines Group. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation. Note that the American Airlines information on this page should be used as a complementary analysis to other American Airlines' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Complementary Tools for American Stock analysis
When running American Airlines' price analysis, check to measure American Airlines' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy American Airlines is operating at the current time. Most of American Airlines' value examination focuses on studying past and present price action to predict the probability of American Airlines' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American Airlines' price. Additionally, you may evaluate how the addition of American Airlines to your portfolios can decrease your overall portfolio volatility.
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Is American Airlines' industry 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 American Airlines. If investors know American 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 American Airlines listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.97) | Earnings Share 0.71 | Revenue Per Share 81.227 | Quarterly Revenue Growth 0.031 | Return On Assets 0.0351 |
The market value of American Airlines is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Airlines' value that differs from its market value or its book value, called intrinsic value, which is American Airlines' 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 American Airlines' market value can be influenced by many factors that don't directly affect American Airlines' 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 American Airlines' value and its price as these two are different measures arrived at by different means. Investors typically determine if American Airlines is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Airlines' 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.