2024-08-16 CALL at $47.5 Option on Edwards Lifesciences Corp

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

Edwards Lifesciences' Option Greeks for the contract ending on 2024-08-16 at a strike price of 47.5 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 Edwards Lifesciences' option greeks, its implied volatility helps estimate the risk of Edwards Lifesciences stock implied by the prices of the options on Edwards Lifesciences' stock.

Buying Edwards Lifesciences' call option is the simplest of option trades. A call option on Edwards Stock gives investors the right (but not the obligation) to purchase Edwards Lifesciences at the given strike price. Therefore Edwards Lifesciences' call intrinsic value or payoff at expiration depends on where the Edwards Stock price is relative to the call option strike price. The strike price of 47.5 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 Edwards Lifesciences' price. Finally, at the break-even point of 88.4, the line crosses zero, and trading Edwards becomes profitable.

By selling Edwards Lifesciences' call option, the investors signals his or her bearish sentiment. A short position in a call option written on Edwards Lifesciences will generally make money when the underlying price goes down. Therefore Edwards Lifesciences' call intrinsic value or payoff at expiration depends on where the Edwards Stock price is relative to the call option strike price. The strike price of 47.5 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 Edwards Lifesciences' price. Finally, at the break-even point of 88.4, the line crosses zero, and trading Edwards becomes disadvantageous with no downside limits.

Edwards Lifesciences' option chain is a display of a range of information that helps investors for ways to trade options on Edwards. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Edwards. It also shows strike prices and maturity days for a Edwards Lifesciences 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.

When running Edwards Lifesciences' price analysis, check to measure Edwards Lifesciences' 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 Edwards Lifesciences is operating at the current time. Most of Edwards Lifesciences' value examination focuses on studying past and present price action to predict the probability of Edwards Lifesciences' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Edwards Lifesciences' price. Additionally, you may evaluate how the addition of Edwards Lifesciences to your portfolios can decrease your overall portfolio volatility.