KBE240517P00059000 Option on SPDR SP Bank
| KBE Etf | USD 45.69 0.54 1.17% |
SPDR SP's latest option contracts expiring on 2024-06-21 are carrying combined implied volatility of 30.6 with a put-to-call open interest ratio of 1.09 over 68 outstanding agreements suggesting investors are buying slightly more puts than calls on contracts expiring on 2024-06-21. The current put volume is at 29, with calls trading at the volume of 12. This yields a 2.42 put-to-call volume ratio.
Open Interest Against 2024-06-21 Option Contracts
2024-06-21
The chart above shows SPDR SP's 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. SPDR SP's open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for SPDR SP's option, there is no secondary market available for investors to trade.
SPDR SP's option chain provides insight into all available option contracts written on SPDR SP's stock. Investors can see outstanding put and call contracts with pricing information and greeks for a given expiration period. In addition, each of SPDR SP's 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 SPDR option contract.
In The Money vs. Out of Money Option Contracts on SPDR SP
Analyzing SPDR SP's in-the-money options over time can help investors to take a profitable long position in SPDR SP regardless of its overall volatility. This is especially true when SPDR SP's options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money SPDR SP's options could be used as guardians of the underlying stock as they move almost dollar for dollar with SPDR SP's stock while costing only a fraction of its price.
SPDR SP's stock options are financial instruments that give investors the right to buy or sell shares of SPDR SP Bank common stock at a specified price for a given time period. Generally speaking, an option to purchase or sell SPDR stock makes it part of the underlying stock when the option's price is tied to the movement of the underlying stock. If SPDR SP's stock price goes up or down, the stock options follow.
SPDR SP Bank In The Money Call Balance
When SPDR SP's strike price is surpassing the current stock price, the option contract against SPDR SP Bank stock is said to be in the money. When it comes to buying SPDR SP's 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 SPDR SP Bank 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.
SPDR Current Options Market Mood
SPDR SP's 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 SPDR Etf'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 SPDR SP's calls and puts, are not very successful. It is estimated that an average options trader loses somewhere between 80% to 90% of the time. SPDR SP's 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 SPDR SP's 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 SPDR contract
Base on the Rule 16, the options market is currently suggesting that SPDR SP Bank will have an average daily up or down price movement of about 1.91% per day over the life of the 2024-06-21 option contract. With SPDR SP trading at USD 45.69, that is roughly USD 0.87. If you think that the market is fully incorporating SPDR SP's daily price movement you should consider buying SPDR SP Bank options at the current volatility level of 30.6%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
SPDR |
Purchasing SPDR SP 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" SPDR calls. Remember, the seller must deliver SPDR SP Bank stock to the call owner when a call is exercised.
SPDR SP Option Chain
When SPDR SP's strike price is surpassing the current stock price, the option contract against SPDR SP Bank 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.
SPDR SP's option chain is a display of a range of information that helps investors for ways to trade options on SPDR. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for SPDR. It also shows strike prices and maturity days for a SPDR SP 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 | 2024-06-21 CALL at $20.0 | 0.9895 | 0.0016 | 0 | 2024-06-21 | 22.6 - 27.5 | 0.0 | In |
Call | 2024-06-21 CALL at $25.0 | 0.8867 | 0.0063 | 1 | 2024-06-21 | 17.3 - 22.3 | 20.8 | In |
Call | 2024-06-21 CALL at $26.0 | 0.8804 | 0.0069 | 1 | 2024-06-21 | 16.3 - 21.3 | 15.2 | In |
Call | 2024-06-21 CALL at $27.0 | 0.8851 | 0.0078 | 4 | 2024-06-21 | 14.8 - 19.8 | 15.0 | In |
Call | 2024-06-21 CALL at $28.0 | 0.8736 | 0.0085 | 6 | 2024-06-21 | 14.0 - 19.0 | 14.2 | In |
Call | 2024-06-21 CALL at $29.0 | 0.872 | 0.0094 | 5 | 2024-06-21 | 12.8 - 17.8 | 13.3 | In |
Call | 2024-06-21 CALL at $30.0 | 0.8517 | 0.0099 | 2 | 2024-06-21 | 12.3 - 17.3 | 14.65 | In |
Call | 2024-06-21 CALL at $31.0 | 0.8637 | 0.0115 | 0 | 2024-06-21 | 10.6 - 15.6 | 0.0 | In |
Call | 2024-06-21 CALL at $32.0 | 0.8486 | 0.0126 | 12 | 2024-06-21 | 9.8 - 14.8 | 12.05 | In |
Call | 2024-06-21 CALL at $33.0 | 0.8395 | 0.0139 | 7 | 2024-06-21 | 8.9 - 13.8 | 7.4 | In |
Call | 2024-06-21 CALL at $34.0 | 0.8415 | 0.0159 | 11 | 2024-06-21 | 7.7 - 12.5 | 5.66 | In |
Call | 2024-06-21 CALL at $35.0 | 0.8187 | 0.0172 | 2 | 2024-06-21 | 7.0 - 11.8 | 5.02 | In |
Call | 2024-06-21 CALL at $36.0 | 0.7994 | 0.0188 | 12 | 2024-06-21 | 6.3 - 11.0 | 4.0 | In |
Call | 2024-06-21 CALL at $37.0 | 0.7761 | 0.0201 | 141 | 2024-06-21 | 5.6 - 10.3 | 9.25 | In |
Call | 2024-06-21 CALL at $38.0 | 0.7821 | 0.025 | 67 | 2024-06-21 | 3.9 - 8.7 | 7.43 | In |
Call | 2024-06-21 CALL at $39.0 | 0.7563 | 0.0275 | 79 | 2024-06-21 | 3.2 - 7.9 | 6.5 | In |
Call | 2024-06-21 CALL at $40.0 | 0.8695 | 0.0425 | 88 | 2024-06-21 | 2.7 - 7.4 | 5.37 | In |
Call | 2024-06-21 CALL at $41.0 | 0.6987 | 0.0334 | 70 | 2024-06-21 | 1.7 - 6.3 | 5.0 | In |
Call | 2024-06-21 CALL at $42.0 | 0.7935 | 0.0703 | 268 | 2024-06-21 | 1.15 - 5.9 | 3.2 | In |
Call | 2024-06-21 CALL at $43.0 | 0.7595 | 0.1002 | 39 | 2024-06-21 | 2.35 - 6.0 | 2.49 | In |
Call | 2024-06-21 CALL at $44.0 | 0.6 | 0.0711 | 210 | 2024-06-21 | 0.4 - 5.0 | 1.97 | In |
Call | 2024-06-21 CALL at $45.0 | 0.5173 | 0.1589 | 274 | 2024-06-21 | 0.0 - 4.8 | 1.02 | Out |
Call | 2024-06-21 CALL at $46.0 | 0.3608 | 0.1514 | 1755 | 2024-06-21 | 0.0 - 4.8 | 0.59 | Out |
Call | 2024-06-21 CALL at $47.0 | 0.2147 | 0.1244 | 2706 | 2024-06-21 | 0.0 - 4.8 | 0.28 | Out |
Call | 2024-06-21 CALL at $50.0 | 0.0731 | 0.044 | 655 | 2024-06-21 | 0.0 - 0.5 | 0.1 | Out |
Call | 2024-06-21 CALL at $60.0 | 0.2797 | 0.0201 | 46 | 2024-06-21 | 0.05 - 4.8 | 0.1 | Out |
Put | 2024-06-21 PUT at $41.0 | -0.0865 | 0.0497 | 99 | 2024-06-21 | 0.0 - 4.8 | 0.13 | Out |
Put | 2024-06-21 PUT at $42.0 | -0.3338 | 0.0374 | 112 | 2024-06-21 | 0.05 - 4.8 | 0.2 | Out |
Put | 2024-06-21 PUT at $43.0 | -0.2167 | 0.107 | 3133 | 2024-06-21 | 0.0 - 0.5 | 0.35 | Out |
Put | 2024-06-21 PUT at $44.0 | -0.3168 | 0.1565 | 652 | 2024-06-21 | 0.0 - 0.6 | 0.48 | Out |
Put | 2024-06-21 PUT at $46.0 | -0.5617 | 0.0841 | 216 | 2024-06-21 | 0.05 - 4.8 | 1.12 | In |
Put | 2024-06-21 PUT at $47.0 | -0.6876 | 0.112 | 102 | 2024-06-21 | 0.3 - 5.1 | 1.45 | In |
Put | 2024-06-21 PUT at $48.0 | -0.8185 | 0.0859 | 99 | 2024-06-21 | 0.25 - 3.3 | 2.25 | In |
Put | 2024-06-21 PUT at $49.0 | -0.6138 | 0.0398 | 2 | 2024-06-21 | 1.65 - 6.3 | 3.3 | In |
Put | 2024-06-21 PUT at $50.0 | -0.8928 | 0.085 | 61 | 2024-06-21 | 2.25 - 6.9 | 5.2 | In |
Put | 2024-06-21 PUT at $51.0 | -0.6537 | 0.034 | 0 | 2024-06-21 | 3.6 - 8.2 | 0.0 | In |
Put | 2024-06-21 PUT at $52.0 | -0.6613 | 0.031 | 0 | 2024-06-21 | 4.6 - 9.3 | 0.0 | In |
Put | 2024-06-21 PUT at $53.0 | -0.6915 | 0.0302 | 0 | 2024-06-21 | 5.3 - 10.0 | 0.0 | In |
Put | 2024-06-21 PUT at $54.0 | -0.6891 | 0.0275 | 0 | 2024-06-21 | 6.4 - 11.2 | 0.0 | In |
Put | 2024-06-21 PUT at $55.0 | -0.9115 | 0.0254 | 0 | 2024-06-21 | 7.9 - 12.6 | 10.11 | In |
Put | 2024-06-21 PUT at $60.0 | -0.7318 | 0.0204 | 0 | 2024-06-21 | 12.2 - 17.2 | 0.0 | In |
Put | 2024-06-21 PUT at $65.0 | -0.7599 | 0.0171 | 0 | 2024-06-21 | 17.2 - 22.1 | 0.0 | In |
Additional Information and Resources on Investing in SPDR Etf
When determining whether SPDR SP Bank is a strong investment it is important to analyze SPDR SP's 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 SPDR SP's future performance. For an informed investment choice regarding SPDR Etf, refer to the following important reports:Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in SPDR SP Bank. Also, note that the market value of any etf could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of labor statistics. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
The market value of SPDR SP Bank is measured differently than its book value, which is the value of SPDR that is recorded on the company's balance sheet. Investors also form their own opinion of SPDR SP's value that differs from its market value or its book value, called intrinsic value, which is SPDR SP's 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 SPDR SP's market value can be influenced by many factors that don't directly affect SPDR SP's 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 SPDR SP's value and its price as these two are different measures arrived at by different means. Investors typically determine if SPDR SP is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, SPDR SP's 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.