ED240517C00047500 Option on Consolidated Edison
| ED Stock | USD 91.75 0.57 0.62% |
Consolidated Edison's latest option contracts expiring on 2024-06-21 are carrying combined implied volatility of 21.2 with a put-to-call open interest ratio of 0.57 over 38 outstanding agreements suggesting investors are buying more calls than puts on contracts expiring on 2024-06-21. The current put volume is at 8.0, with calls trading at the volume of 6.0. This yields a 1.33 put-to-call volume ratio.
Open Interest Against 2024-06-21 Option Contracts
2024-06-21
The chart above shows Consolidated Edison's distribution of open interest by maturity on contracts that have not yet been settled. The area between the two highest points is the projection of the price at expiration. Consolidated Edison's open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Consolidated Edison's option, there is no secondary market available for investors to trade.
Consolidated Edison Maximum Pain Price across 2024-06-21 Option Contracts
Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of particular securities such as Consolidated Edison close to expiration to expire worthless. According to most research, approximately 10% to 15% of all stock options are exercised, while about 35% expire worthlessly, with roughly 50% traded out before the expiration date. So, Max pain occurs when market makers reach a net positive position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthless.
Consolidated Edison's option chain provides insight into all available option contracts written on Consolidated Edison's stock. Investors can see outstanding put and call contracts with pricing information and greeks for a given expiration period. In addition, each of Consolidated Edison's stock options below provides a detailed picture of the payoff. Comparing vital and dynamic information of various option contracts across diverse expiration periods will help you make an educated decision on your market timing strategies around investing in a given Consolidated option contract.
In The Money vs. Out of Money Option Contracts on Consolidated Edison
Analyzing Consolidated Edison's in-the-money options over time can help investors to take a profitable long position in Consolidated Edison regardless of its overall volatility. This is especially true when Consolidated Edison's options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money Consolidated Edison's options could be used as guardians of the underlying stock as they move almost dollar for dollar with Consolidated Edison's stock while costing only a fraction of its price.
Consolidated Edison's stock options are financial instruments that give investors the right to buy or sell shares of Consolidated Edison common stock at a specified price for a given time period. Generally speaking, an option to purchase or sell Consolidated stock makes it part of the underlying stock when the option's price is tied to the movement of the underlying stock. If Consolidated Edison's stock price goes up or down, the stock options follow.
At present, Consolidated Edison's Stock Based Compensation is projected to increase significantly based on the last few years of reporting. Consolidated Edison In The Money Call Balance
When Consolidated Edison's strike price is surpassing the current stock price, the option contract against Consolidated Edison stock is said to be in the money. When it comes to buying Consolidated Edison's options that are 'In the Money' or 'Out of the Money', the choice depends on your outlook for the underlying security, financial situation, and what you are trying to achieve.
While 'out-of-the-money' option contracts written on Consolidated Edison are typically viewed as the more aggressive, there are potential upsides to purchasing these types of options contracts. For one, the cost to buy an 'Out of the Money' option is lower than the cost to buy an 'In the Money' option. This cost-benefit is due to the fact that at the time of the purchase, 'Out of the Money' contracts have no intrinsic value. So, while the potential for a 100% loss is more significant, the cost and risk to enter the trade are lower.
Consolidated Current Options Market Mood
Consolidated Edison's open interest and total value indicators provide investors with the necessary information to digest the overall options buildup for its expiring contracts. In addition, it helps Consolidated Stock's traders understand whether a recent fall or rise in the market is unreasonable and if the time has come to take contrarian positions. These ratios are calculated based on options trading volumes and current open interest.
Put-to-Call Open Interest
Put-to-Call Volume
Most options investors, including buyers and sellers of Consolidated Edison's calls and puts, are not very successful. It is estimated that an average options trader loses somewhere between 80% to 90% of the time. Consolidated Edison's option open interest and volume spread between outstanding puts and calls are regarded by many investors as reliable indicators of the overall future market direction. Using current Consolidated Edison's option volume and open interest to make an investment decision is considered a contrarian-sentiment measure that can be utilized in many timing strategies in both derivative and spot marketplace.
Rule 16 of the current Consolidated contract
Base on the Rule 16, the options market is currently suggesting that Consolidated Edison will have an average daily up or down price movement of about 1.33% per day over the life of the 2024-06-21 option contract. With Consolidated Edison trading at USD 91.75, that is roughly USD 1.22. If you think that the market is fully incorporating Consolidated Edison's daily price movement you should consider buying Consolidated Edison options at the current volatility level of 21.2%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
Consolidated |
Purchasing Consolidated Edison options can give investors a meaningful hedge against losses and, therefore, could be used conservatively to decrease the volatility of your portfolio. However, many options could also amount to little more than gambling, significantly enhancing your overall portfolio risk. One simple example of these aggressive strategies is the sale of "uncovered" Consolidated calls. Remember, the seller must deliver Consolidated Edison stock to the call owner when a call is exercised.
Consolidated Edison Option Chain
When Consolidated Edison's strike price is surpassing the current stock price, the option contract against Consolidated Edison stock is said to be in the money. When it comes to buying options that are ITM or OTM, the choice depends on your outlook for the underlying security, financial situation, and what you are trying to achieve.
Consolidated Edison's option chain is a display of a range of information that helps investors for ways to trade options on Consolidated. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Consolidated. It also shows strike prices and maturity days for a Consolidated Edison 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 | 2024-06-21 CALL at $60.0 | 0.9804 | 0.003 | 0 | 2024-06-21 | 29.9 - 33.9 | 0.0 | In |
Call | 2024-06-21 CALL at $65.0 | 0.9773 | 0.0032 | 0 | 2024-06-21 | 24.9 - 28.9 | 0.0 | In |
Call | 2024-06-21 CALL at $70.0 | 0.9668 | 0.0052 | 0 | 2024-06-21 | 20.1 - 23.8 | 27.95 | In |
Call | 2024-06-21 CALL at $75.0 | 0.9676 | 0.0069 | 3 | 2024-06-21 | 15.0 - 18.8 | 21.36 | In |
Call | 2024-06-21 CALL at $80.0 | 0.923 | 0.0157 | 0 | 2024-06-21 | 10.2 - 12.1 | 18.0 | In |
Call | 2024-06-21 CALL at $82.5 | 0.966 | 0.0136 | 0 | 2024-06-21 | 9.0 - 9.7 | 0.0 | In |
Call | 2024-06-21 CALL at $85.0 | 0.8717 | 0.0326 | 2 | 2024-06-21 | 5.2 - 7.2 | 6.82 | In |
Call | 2024-06-21 CALL at $87.5 | 0.8912 | 0.0514 | 3 | 2024-06-21 | 2.95 - 6.0 | 4.18 | In |
Call | 2024-06-21 CALL at $90.0 | 0.6654 | 0.0814 | 2 | 2024-06-21 | 2.1 - 3.5 | 2.85 | In |
Call | 2024-06-21 CALL at $92.5 | 0.3892 | 0.1592 | 138 | 2024-06-21 | 0.6 - 0.7 | 0.95 | Out |
Call | 2024-06-21 CALL at $95.0 | 0.1057 | 0.0731 | 530 | 2024-06-21 | 0.05 - 0.2 | 0.15 | Out |
Call | 2024-06-21 CALL at $97.5 | 0.0646 | 0.035 | 1508 | 2024-06-21 | 0.0 - 0.15 | 0.1 | Out |
Call | 2024-06-21 CALL at $100.0 | 0.0512 | 0.0222 | 511 | 2024-06-21 | 0.05 - 0.1 | 0.1 | Out |
Put | 2024-06-21 PUT at $85.0 | -0.0527 | 0.0243 | 16 | 2024-06-21 | 0.05 - 0.15 | 0.1 | Out |
Put | 2024-06-21 PUT at $87.5 | -0.0727 | 0.0453 | 27 | 2024-06-21 | 0.05 - 0.15 | 0.12 | Out |
Put | 2024-06-21 PUT at $90.0 | -0.2189 | 0.125 | 112 | 2024-06-21 | 0.3 - 0.35 | 0.3 | Out |
Put | 2024-06-21 PUT at $92.5 | -0.6249 | 0.1751 | 185 | 2024-06-21 | 1.2 - 1.35 | 1.16 | In |
Put | 2024-06-21 PUT at $95.0 | -0.8961 | 0.0727 | 998 | 2024-06-21 | 3.2 - 3.5 | 3.1 | In |
Put | 2024-06-21 PUT at $97.5 | -0.8772 | 0.0436 | 240 | 2024-06-21 | 4.8 - 6.0 | 5.8 | In |
Put | 2024-06-21 PUT at $100.0 | -0.8781 | 0.0309 | 6 | 2024-06-21 | 7.7 - 8.6 | 6.15 | In |
Put | 2024-06-21 PUT at $105.0 | -0.8772 | 0.0201 | 0 | 2024-06-21 | 13.0 - 14.6 | 0.0 | In |
Put | 2024-06-21 PUT at $110.0 | -0.9437 | 0.0112 | 0 | 2024-06-21 | 17.8 - 19.1 | 0.0 | In |
Put | 2024-06-21 PUT at $115.0 | -0.8306 | 0.013 | 0 | 2024-06-21 | 21.6 - 24.8 | 0.0 | In |
Put | 2024-06-21 PUT at $120.0 | -0.8222 | 0.0119 | 0 | 2024-06-21 | 26.2 - 30.2 | 0.0 | In |
Put | 2024-06-21 PUT at $125.0 | -0.8331 | 0.0098 | 0 | 2024-06-21 | 31.2 - 35.2 | 0.0 | In |
Put | 2024-06-21 PUT at $130.0 | -0.8419 | 0.0087 | 0 | 2024-06-21 | 36.2 - 40.2 | 0.0 | In |
Consolidated Edison Market Cap Over Time
Market Cap |
| Timeline |
Consolidated Total Stockholder Equity
Total Stockholder Equity |
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Consolidated Edison Corporate Directors
| John Killian | Independent Director | Profile | |
| Michael Ranger | Independent Director | Profile | |
| Armando Olivera | Independent Director | Profile | |
| Jan Childress | Director - Investor Relations | Profile |
Additional Information and Resources on Investing in Consolidated Stock
When determining whether Consolidated Edison is a strong investment it is important to analyze Consolidated Edison's 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 Consolidated Edison's future performance. For an informed investment choice regarding Consolidated Stock, refer to the following important reports:Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Consolidated Edison. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in unemployment. For information on how to trade Consolidated Stock refer to our How to Trade Consolidated Stock guide.You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Is Multi-Utilities 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 Consolidated Edison. If investors know Consolidated 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 Consolidated Edison 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 (0.49) | Dividend Share 3.26 | Earnings Share 5.24 | Revenue Per Share 42.041 | Quarterly Revenue Growth (0.03) |
The market value of Consolidated Edison is measured differently than its book value, which is the value of Consolidated that is recorded on the company's balance sheet. Investors also form their own opinion of Consolidated Edison's value that differs from its market value or its book value, called intrinsic value, which is Consolidated Edison'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 Consolidated Edison's market value can be influenced by many factors that don't directly affect Consolidated Edison'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 Consolidated Edison's value and its price as these two are different measures arrived at by different means. Investors typically determine if Consolidated Edison is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Consolidated Edison'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.