2024-09-20 CALL at $120.0 Option on Jazz Pharmaceuticals PLC

An 'Out of The Money' option on Jazz has a strike price that Jazz 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 Jazz Pharmaceuticals' 'Out of The Money' options include buying the options if you expect a big move in Jazz Pharmaceuticals' 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.

Jazz Pharmaceuticals' Option Greeks for the contract ending on 2024-09-20 at a strike price of 120.0 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 Jazz Pharmaceuticals' option greeks, its implied volatility helps estimate the risk of Jazz Pharmaceuticals stock implied by the prices of the options on Jazz Pharmaceuticals' stock.

Buying Jazz Pharmaceuticals' call option is the simplest of option trades. A call option on Jazz Stock gives investors the right (but not the obligation) to purchase Jazz Pharmaceuticals at the given strike price. Therefore Jazz Pharmaceuticals' call intrinsic value or payoff at expiration depends on where the Jazz Stock price is relative to the call option strike price. The strike price of 120.0 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 Jazz Pharmaceuticals' price. Finally, at the break-even point of 120.2, the line crosses zero, and trading Jazz becomes profitable.

By selling Jazz Pharmaceuticals' call option, the investors signals his or her bearish sentiment. A short position in a call option written on Jazz Pharmaceuticals will generally make money when the underlying price goes down. Therefore Jazz Pharmaceuticals' call intrinsic value or payoff at expiration depends on where the Jazz Stock price is relative to the call option strike price. The strike price of 120.0 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 Jazz Pharmaceuticals' price. Finally, at the break-even point of 120.2, the line crosses zero, and trading Jazz becomes disadvantageous with no downside limits.

Jazz Pharmaceuticals' option chain is a display of a range of information that helps investors for ways to trade options on Jazz. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Jazz. It also shows strike prices and maturity days for a Jazz Pharmaceuticals 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 Jazz Pharmaceuticals' price analysis, check to measure Jazz Pharmaceuticals' 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 Jazz Pharmaceuticals is operating at the current time. Most of Jazz Pharmaceuticals' value examination focuses on studying past and present price action to predict the probability of Jazz Pharmaceuticals' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Jazz Pharmaceuticals' price. Additionally, you may evaluate how the addition of Jazz Pharmaceuticals to your portfolios can decrease your overall portfolio volatility.