MLCO240510P00009500 Option on Melco Resorts Entert
| MLCO Stock | USD 8.24 0.08 0.98% |
Melco Resorts' latest option contracts expiring on 2024-06-07 are carrying combined implied volatility of 63.55 with a put-to-call open interest ratio of 0.06 over 56 outstanding agreements suggesting investors are buying way more calls than puts on contracts expiring on 2024-06-07. The current put volume is at 20, with calls trading at the volume of 2015. This yields a 0.01 put-to-call volume ratio.
Open Interest Against 2024-06-07 Option Contracts
Melco Resorts option prices can potentially be used to forecast stock returns because most option chains provide information not only about the current prices but also about the future conditions in Melco Resorts' lending market. For example, when Melco Resorts' puts are not actively trading or completely missing in the marketplace, investors can use it to internalize expected shorting costs. So if an investor is writing a put option on Melco Resorts, he or she must hedge the risk by shorting Melco Resorts stock over its option's life.
2024-06-07
The chart above shows Melco Resorts' 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. Melco Resorts' open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Melco Resorts' option, there is no secondary market available for investors to trade.
Melco Resorts' option chain provides insight into all available option contracts written on Melco Resorts' stock. Investors can see outstanding put and call contracts with pricing information and greeks for a given expiration period. In addition, each of Melco Resorts' 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 Melco option contract.
In The Money vs. Out of Money Option Contracts on Melco Resorts
Analyzing Melco Resorts' in-the-money options over time can help investors to take a profitable long position in Melco Resorts regardless of its overall volatility. This is especially true when Melco Resorts' options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money Melco Resorts' options could be used as guardians of the underlying stock as they move almost dollar for dollar with Melco Resorts' stock while costing only a fraction of its price.
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Melco Resorts Entertainment. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in main economic indicators.
Please note that buying 'in-the-money' options on Melco Resorts lessens the impact of time decay, as they carry both intrinsic and time value. So, even if Melco Resorts' value remains static through the expiration date, the investor can sell to close an 'in-the-money' option to avoid a potential loss. However, in-the-money Melco Resorts contracts are usually more expensive to enter than their out-of-the-money counterparts. So keep in mind that while the payoffs on an in-the-money trade can be high, the investors could ultimately experience a more consequential loss if Melco Stock moves the wrong way.
At this time, Melco Resorts' Common Stock Shares Outstanding is very stable compared to the past year. As of the 5th of June 2024, Common Stock is likely to grow to about 15.4 M, though Total Stockholder Equity is likely to grow to (1.2 B). Melco Resorts Entert In The Money Call Balance
When Melco Resorts' strike price is surpassing the current stock price, the option contract against Melco Resorts Entertainment stock is said to be in the money. When it comes to buying Melco Resorts' 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 Melco Resorts Entertainment 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.
Melco Current Options Market Mood
Melco Resorts' 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 Melco 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 Melco Resorts' calls and puts, are not very successful. It is estimated that an average options trader loses somewhere between 80% to 90% of the time. Melco Resorts' 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 Melco Resorts' 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 Melco contract
Base on the Rule 16, the options market is currently suggesting that Melco Resorts Entertainment will have an average daily up or down price movement of about 3.97% per day over the life of the 2024-06-07 option contract. With Melco Resorts trading at USD 8.24, that is roughly USD 0.33. If you think that the market is fully incorporating Melco Resorts' daily price movement you should consider buying Melco Resorts Entertainment options at the current volatility level of 63.55%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
Melco |
Purchasing Melco Resorts 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" Melco calls. Remember, the seller must deliver Melco Resorts Entertainment stock to the call owner when a call is exercised.
Melco Resorts Option Chain
When Melco Resorts' strike price is surpassing the current stock price, the option contract against Melco Resorts Entertainment 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.
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Melco Resorts' option chain is a display of a range of information that helps investors for ways to trade options on Melco. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Melco. It also shows strike prices and maturity days for a Melco Resorts 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 $3.0 | 0.9351 | 0.0155 | 0 | 2024-06-07 | 4.1 - 7.1 | 0.0 | In |
Call | 2024-06-07 CALL at $3.5 | 0.9231 | 0.0204 | 0 | 2024-06-07 | 3.6 - 6.6 | 0.0 | In |
Call | 2024-06-07 CALL at $4.0 | 0.91 | 0.0264 | 0 | 2024-06-07 | 3.1 - 6.1 | 0.0 | In |
Call | 2024-06-07 CALL at $4.5 | 0.8678 | 0.0282 | 0 | 2024-06-07 | 3.6 - 5.5 | 0.0 | In |
Call | 2024-06-07 CALL at $5.0 | 0.8428 | 0.033 | 0 | 2024-06-07 | 3.1 - 5.3 | 0.0 | In |
Call | 2024-06-07 CALL at $5.5 | 0.8555 | 0.0554 | 0 | 2024-06-07 | 1.75 - 4.5 | 0.0 | In |
Call | 2024-06-07 CALL at $6.0 | 0.9327 | 0.0688 | 0 | 2024-06-07 | 1.3 - 3.3 | 0.0 | In |
Call | 2024-06-07 CALL at $6.5 | 0.9737 | 0.0748 | 0 | 2024-06-07 | 1.65 - 1.85 | 0.0 | In |
Call | 2024-06-07 CALL at $7.0 | 0.9651 | 0.1014 | 22 | 2024-06-07 | 1.15 - 1.35 | 1.7 | In |
Call | 2024-06-07 CALL at $7.5 | 0.9483 | 0.2189 | 0 | 2024-06-07 | 0.7 - 0.8 | 0.65 | In |
Call | 2024-06-07 CALL at $8.0 | 0.7432 | 0.837 | 2363 | 2024-06-07 | 0.25 - 0.35 | 0.2 | In |
Call | 2024-06-07 CALL at $8.5 | 0.3049 | 0.7348 | 136 | 2024-06-07 | 0.05 - 0.1 | 0.09 | Out |
Put | 2024-06-07 PUT at $7.5 | -0.1323 | 0.2962 | 77 | 2024-06-07 | 0.0 - 0.15 | 0.05 | Out |
Put | 2024-06-07 PUT at $8.0 | -0.3033 | 0.6974 | 42 | 2024-06-07 | 0.05 - 0.1 | 0.1 | Out |
Put | 2024-06-07 PUT at $8.5 | -0.6959 | 0.7375 | 30 | 2024-06-07 | 0.3 - 0.4 | 0.35 | In |
Put | 2024-06-07 PUT at $9.0 | -0.8701 | 0.3379 | 0 | 2024-06-07 | 0.75 - 0.85 | 0.0 | In |
Put | 2024-06-07 PUT at $9.5 | -0.5271 | 0.1028 | 0 | 2024-06-07 | 0.15 - 2.35 | 0.0 | In |
Put | 2024-06-07 PUT at $10.0 | -0.8861 | 0.1546 | 0 | 2024-06-07 | 0.8 - 2.85 | 0.0 | In |
Put | 2024-06-07 PUT at $10.5 | -0.8389 | 0.1345 | 0 | 2024-06-07 | 1.25 - 2.4 | 0.0 | In |
Put | 2024-06-07 PUT at $11.0 | -0.6241 | 0.0908 | 0 | 2024-06-07 | 2.3 - 4.9 | 0.0 | In |
Put | 2024-06-07 PUT at $11.5 | -0.9396 | 0.0718 | 0 | 2024-06-07 | 3.2 - 3.4 | 0.0 | In |
Put | 2024-06-07 PUT at $12.0 | -0.8698 | 0.0869 | 0 | 2024-06-07 | 2.95 - 3.9 | 0.0 | In |
Put | 2024-06-07 PUT at $12.5 | -0.8763 | 0.0782 | 0 | 2024-06-07 | 3.5 - 4.4 | 0.0 | In |
Put | 2024-06-07 PUT at $13.0 | -0.8817 | 0.0712 | 0 | 2024-06-07 | 3.6 - 4.9 | 0.0 | In |
Put | 2024-06-07 PUT at $14.0 | -0.9542 | 0.0402 | 0 | 2024-06-07 | 5.7 - 5.9 | 0.0 | In |
Put | 2024-06-07 PUT at $15.0 | -0.9574 | 0.0344 | 0 | 2024-06-07 | 6.7 - 6.9 | 0.0 | In |
Put | 2024-06-07 PUT at $16.0 | -0.9019 | 0.0478 | 0 | 2024-06-07 | 6.6 - 7.9 | 0.0 | In |
Put | 2024-06-07 PUT at $17.0 | -0.9618 | 0.0271 | 0 | 2024-06-07 | 8.7 - 8.9 | 0.0 | In |
Melco Resorts Total Stockholder Equity Over Time
The total equity held by shareholders, calculated as the difference between a company's total assets and total liabilities. It represents the net value of the company owned by shareholders. Total Stockholder Equity |
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Melco Resorts Common Stock Shares Outstanding Over Time
The total number of shares of a company's common stock that are currently owned by all its shareholders. Common Stock Shares Outstanding |
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Melco Total Stockholder Equity
Total Stockholder Equity |
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Melco Resorts Corporate Management
| Graham Winter | Executive Officer | Profile | |
| Robin CFA | Director Relations | Profile | |
| Amy Kuzdowicz | Senior Officer | Profile | |
| Jeanny Kim | Senior Treasurer | Profile |
Additional Information and Resources on Investing in Melco Stock
When determining whether Melco Resorts Entert offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Melco Resorts' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Melco Resorts Entertainment Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Melco Resorts Entertainment Stock:Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Melco Resorts Entertainment. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in main economic indicators. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
Is Hotels, Restaurants & Leisure 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 Melco Resorts. If investors know Melco 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 Melco Resorts 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 7.797 | Earnings Share (0.53) | Revenue Per Share 9.545 | Quarterly Revenue Growth 0.553 | Return On Assets 0.0295 |
The market value of Melco Resorts Entert is measured differently than its book value, which is the value of Melco that is recorded on the company's balance sheet. Investors also form their own opinion of Melco Resorts' value that differs from its market value or its book value, called intrinsic value, which is Melco Resorts' 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 Melco Resorts' market value can be influenced by many factors that don't directly affect Melco Resorts' 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 Melco Resorts' value and its price as these two are different measures arrived at by different means. Investors typically determine if Melco Resorts is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Melco Resorts' 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.