2024-05-17 PUT at $41.0 Option on STMicroelectronics NV ADR
| STM Stock | USD 40.13 0.06 0.15% |
2024-05-17 PUT at $41.0 is a PUT option contract on STMicroelectronics' common stock with a strick price of 41.0 expiring on 2024-05-17. The contract was last traded on 2024-05-03 at 14:45:09 for $1.55 and, as of today, has 11 days remaining before the expiration. The option is currently trading at a bid price of $1.4, and an ask price of $1.5. The implied volatility as of the 7th of May is 31.2.
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in STMicroelectronics NV ADR. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate.
STMicroelectronics |
A put option written on STMicroelectronics becomes more valuable as the price of STMicroelectronics drops. Conversely, STMicroelectronics' put option loses its value as STMicroelectronics Stock rises. When exercised, put options on STMicroelectronics produce a short position in STMicroelectronics Stock. Because of this protective nature, they are typically used either for hedging purposes or to capitalize on STMicroelectronics' downside price movement.
Rule 16 of 2024-05-17 Option Contract
The options market is anticipating that STMicroelectronics NV ADR will have an average daily up or down price movement of about 1.95% per day over the life of the option. With STMicroelectronics trading at USD 40.13, that is roughly USD 0.78. If you think that the market is fully understating STMicroelectronics' daily price movement you should consider buying STMicroelectronics NV ADR options at that current volatility level of 31.2%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
In The Money Put Option on STMicroelectronics
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 STMicroelectronics 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 STMicroelectronics Stock have intrinsic value and are priced higher than out-of-the-money options in the same chain, their volatilities are relatively smaller.
| Put Contract Name | 2024-05-17 PUT at $41.0 |
| Expires On | 2024-05-17 |
| Days Before Expriration | 11 |
| Last Traded On | 2024-05-03 14:45:09 |
| Contract Period | MONTHLY |
| Open Interest | 191 |
| Current Trading Volume | 25.0 |
| Strike Price | 41.0 |
| Last Traded At | 1.55 |
| Current Price Spread | 1.4 | 1.5 |
| Rule 16 Daily Up or Down | USD0.78 |
STMicroelectronics short PUT Option Greeks
STMicroelectronics' Option Greeks for the contract ending on 2024-05-17 at a strike price of 41.0 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 STMicroelectronics' option greeks, its implied volatility helps estimate the risk of STMicroelectronics stock implied by the prices of the options on STMicroelectronics' stock.
| Delta | -0.6343 | |
| Gamma | 0.1717 | |
| Theta | -0.0313 | |
| Vega | 0.0284 | |
| Rho | -0.0075 |
STMicroelectronics long PUT Option Payoff at expiration
Put options written on STMicroelectronics grant holders of the option the right to sell a specified amount of STMicroelectronics at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of STMicroelectronics Stock cannot fall below zero, the put buyer does gain as the price drops. So, purchasing a put option on STMicroelectronics is like buying insurance aginst STMicroelectronics' downside shift.
Profit |
| STMicroelectronics Price At Expiration |
STMicroelectronics short PUT Option Payoff at expiration
By selling STMicroelectronics' put option, the investors signal their bearish sentiment. A short position in a put option written on STMicroelectronics will generally make money when the underlying price is above the strike price. Therefore STMicroelectronics' put payoff at expiration depends on where the STMicroelectronics Stock price is relative to the put option strike price. The breakeven price of 39.55 is the critical point that divides the payoff function into two parts. Below the breakeven price, the payoff is dropping and negative (the seller makes a loss). Above the breakeven price, the payoff line is upward sloping as the option payoff increases in proportion to STMicroelectronics' price. Finally, at the strike price of 41.0, the payoff chart is constant and positive.
Profit |
| STMicroelectronics Price At Expiration |
STMicroelectronics NV ADR Available Put Options
STMicroelectronics' option chain is a display of a range of information that helps investors for ways to trade options on STMicroelectronics. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for STMicroelectronics. It also shows strike prices and maturity days for a STMicroelectronics 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 | |||
Put | 2024-05-17 PUT at $70.0 | -0.7672 | 0.0138 | 0 | 2024-05-17 | 27.5 - 32.2 | 0.0 | In |
Put | 2024-05-17 PUT at $65.0 | -0.7554 | 0.0154 | 0 | 2024-05-17 | 22.5 - 27.2 | 0.0 | In |
Put | 2024-05-17 PUT at $60.0 | -0.9156 | 0.0145 | 0 | 2024-05-17 | 19.0 - 21.5 | 0.0 | In |
Put | 2024-05-17 PUT at $55.0 | -0.7243 | 0.021 | 0 | 2024-05-17 | 12.6 - 17.1 | 0.0 | In |
Put | 2024-05-17 PUT at $50.0 | -0.7331 | 0.0286 | 0 | 2024-05-17 | 7.8 - 11.5 | 0.0 | In |
Put | 2024-05-17 PUT at $49.0 | -0.9737 | 0.0148 | 0 | 2024-05-17 | 6.8 - 11.1 | 10.2 | In |
Put | 2024-05-17 PUT at $48.0 | -0.9714 | 0.1657 | 0 | 2024-05-17 | 5.8 - 10.1 | 0.0 | In |
Put | 2024-05-17 PUT at $47.0 | -0.8324 | 0.0412 | 32 | 2024-05-17 | 5.8 - 9.0 | 7.39 | In |
Put | 2024-05-17 PUT at $46.0 | -0.745 | 0.044 | 10 | 2024-05-17 | 5.8 - 8.0 | 4.82 | In |
Put | 2024-05-17 PUT at $45.0 | -0.9256 | 0.0453 | 15 | 2024-05-17 | 4.3 - 5.0 | 5.75 | In |
Put | 2024-05-17 PUT at $44.0 | -0.8875 | 0.0648 | 344 | 2024-05-17 | 3.9 - 4.2 | 2.95 | In |
Put | 2024-05-17 PUT at $43.0 | -0.8848 | 0.0849 | 125 | 2024-05-17 | 2.95 - 3.1 | 3.25 | In |
Put | 2024-05-17 PUT at $42.0 | -0.7782 | 0.1289 | 542 | 2024-05-17 | 2.1 - 2.25 | 2.3 | In |
Put | 2024-05-17 PUT at $41.0 | -0.6343 | 0.1717 | 191 | 2024-05-17 | 1.4 - 1.5 | 1.55 | In |
Put | 2024-05-17 PUT at $40.0 | -0.4678 | 0.1652 | 517 | 2024-05-17 | 0.85 - 0.95 | 0.96 | Out |
Put | 2024-05-17 PUT at $39.0 | -0.3092 | 0.1446 | 923 | 2024-05-17 | 0.45 - 0.55 | 0.95 | Out |
Put | 2024-05-17 PUT at $38.0 | -0.1806 | 0.1062 | 167 | 2024-05-17 | 0.25 - 0.3 | 0.25 | Out |
Put | 2024-05-17 PUT at $37.0 | -0.1103 | 0.0689 | 525 | 2024-05-17 | 0.1 - 0.2 | 0.15 | Out |
Put | 2024-05-17 PUT at $36.0 | -0.0715 | 0.0447 | 224 | 2024-05-17 | 0.05 - 0.15 | 0.18 | Out |
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Already Invested in STMicroelectronics NV ADR?
The danger of trading STMicroelectronics NV ADR 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 STMicroelectronics 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 STMicroelectronics. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile STMicroelectronics NV ADR 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 STMicroelectronics NV ADR is a strong investment it is important to analyze STMicroelectronics' 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 STMicroelectronics' future performance. For an informed investment choice regarding STMicroelectronics Stock, refer to the following important reports: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in STMicroelectronics NV ADR. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate. You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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When running STMicroelectronics' price analysis, check to measure STMicroelectronics' 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 STMicroelectronics is operating at the current time. Most of STMicroelectronics' value examination focuses on studying past and present price action to predict the probability of STMicroelectronics' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move STMicroelectronics' price. Additionally, you may evaluate how the addition of STMicroelectronics to your portfolios can decrease your overall portfolio volatility.
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Is STMicroelectronics' 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 STMicroelectronics. If investors know STMicroelectronics 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 STMicroelectronics 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 (0.51) | Dividend Share 0.36 | Earnings Share 3.9 | Revenue Per Share 18.266 | Quarterly Revenue Growth (0.18) |
The market value of STMicroelectronics NV ADR is measured differently than its book value, which is the value of STMicroelectronics that is recorded on the company's balance sheet. Investors also form their own opinion of STMicroelectronics' value that differs from its market value or its book value, called intrinsic value, which is STMicroelectronics' 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 STMicroelectronics' market value can be influenced by many factors that don't directly affect STMicroelectronics' 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 STMicroelectronics' value and its price as these two are different measures arrived at by different means. Investors typically determine if STMicroelectronics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, STMicroelectronics' 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.