2024-06-28 CALL at $640.0 Option on United Rentals

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

United Rentals' Option Greeks for the contract ending on 2024-06-28 at a strike price of 640.0 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 United Rentals' option greeks, its implied volatility helps estimate the risk of United Rentals stock implied by the prices of the options on United Rentals' stock.

Buying United Rentals' call option is the simplest of option trades. A call option on United Stock gives investors the right (but not the obligation) to purchase United Rentals at the given strike price. Therefore United Rentals' call intrinsic value or payoff at expiration depends on where the United Stock price is relative to the call option strike price. The strike price of 640.0 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 United Rentals' price. Finally, at the break-even point of 642.9, the line crosses zero, and trading United becomes profitable.

By selling United Rentals' call option, the investors signals his or her bearish sentiment. A short position in a call option written on United Rentals will generally make money when the underlying price goes down. Therefore United Rentals' call intrinsic value or payoff at expiration depends on where the United Stock price is relative to the call option strike price. The strike price of 640.0 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 United Rentals' price. Finally, at the break-even point of 642.9, the line crosses zero, and trading United becomes disadvantageous with no downside limits.

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

Check out World Market Map to better understand how to build diversified portfolios, which includes a position in United Rentals. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. For more detail on how to invest in United Stock please use our How to Invest in United Rentals guide.You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.

Is Trading Companies & Distributors 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 United Rentals. If investors know United 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 United Rentals listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

The market value of United Rentals is measured differently than its book value, which is the value of United that is recorded on the company's balance sheet. Investors also form their own opinion of United Rentals' value that differs from its market value or its book value, called intrinsic value, which is United Rentals' 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 United Rentals' market value can be influenced by many factors that don't directly affect United Rentals' 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 United Rentals' value and its price as these two are different measures arrived at by different means. Investors typically determine if United Rentals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, United Rentals' 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.