AAOI240517P00011500 Option on Applied Opt
| AAOI Stock | USD 10.55 0.17 1.64% |
Applied Opt's latest option contracts expiring on 2024-06-14 are carrying combined implied volatility of 108.18 with a put-to-call open interest ratio of 0.6 over 70 outstanding agreements suggesting investors are buying more calls than puts on contracts expiring on 2024-06-14. The current put volume is at 208, with calls trading at the volume of 539. This yields a 0.39 put-to-call volume ratio.
Open Interest Against 2024-06-14 Option Contracts
2024-06-14
The chart above shows Applied Opt'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. Applied Opt's open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Applied Opt's option, there is no secondary market available for investors to trade.
Applied Opt Maximum Pain Price across 2024-06-14 Option Contracts
Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of particular securities such as Applied Opt close to expiration to expire worthless. According to most research, approximately 10% to 15% of all stock options are exercised, while about 35% expire worthlessly, with roughly 50% traded out before the expiration date. So, Max pain occurs when market makers reach a net positive position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthless.
Applied Opt's option chain provides insight into all available option contracts written on Applied Opt's stock. Investors can see outstanding put and call contracts with pricing information and greeks for a given expiration period. In addition, each of Applied Opt'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 Applied option contract.
In The Money vs. Out of Money Option Contracts on Applied Opt
Analyzing Applied Opt's in-the-money options over time can help investors to take a profitable long position in Applied Opt regardless of its overall volatility. This is especially true when Applied Opt's options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money Applied Opt's options could be used as guardians of the underlying stock as they move almost dollar for dollar with Applied Opt's stock while costing only a fraction of its price.
Applied Opt's stock options are financial instruments that give investors the right to buy or sell shares of Applied Opt common stock at a specified price for a given time period. Generally speaking, an option to purchase or sell Applied stock makes it part of the underlying stock when the option's price is tied to the movement of the underlying stock. If Applied Opt's stock price goes up or down, the stock options follow.
The Applied Opt's current Stock Based Compensation To Revenue is estimated to increase to 0.06, while Common Stock Shares Outstanding is projected to decrease to under 20 M. Applied Opt In The Money Call Balance
When Applied Opt's strike price is surpassing the current stock price, the option contract against Applied Opt stock is said to be in the money. When it comes to buying Applied Opt'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 Applied Opt 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.
Applied Current Options Market Mood
Applied Opt'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 Applied 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 Applied Opt'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. Applied Opt'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 Applied Opt'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 Applied contract
Base on the Rule 16, the options market is currently suggesting that Applied Opt will have an average daily up or down price movement of about 6.76% per day over the life of the 2024-06-14 option contract. With Applied Opt trading at USD 10.55, that is roughly USD 0.71. If you think that the market is fully incorporating Applied Opt's daily price movement you should consider buying Applied Opt options at the current volatility level of 108.18%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
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Purchasing Applied Opt 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" Applied calls. Remember, the seller must deliver Applied Opt stock to the call owner when a call is exercised.
Applied Opt Option Chain
When Applied Opt's strike price is surpassing the current stock price, the option contract against Applied Opt 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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Applied Opt's option chain is a display of a range of information that helps investors for ways to trade options on Applied. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Applied. It also shows strike prices and maturity days for a Applied Opt 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 | 2024-06-14 CALL at $2.0 | 0.9695 | 0.0045 | 0 | 2024-06-14 | 7.3 - 10.5 | 0.0 | In |
Call | 2024-06-14 CALL at $2.5 | 0.959 | 0.0061 | 0 | 2024-06-14 | 6.8 - 10.2 | 0.0 | In |
Call | 2024-06-14 CALL at $3.0 | 0.9551 | 0.0082 | 0 | 2024-06-14 | 6.3 - 9.5 | 0.0 | In |
Call | 2024-06-14 CALL at $4.0 | 0.9212 | 0.0118 | 0 | 2024-06-14 | 6.2 - 8.5 | 0.0 | In |
Call | 2024-06-14 CALL at $5.0 | 0.9509 | 0.0178 | 0 | 2024-06-14 | 4.0 - 7.4 | 0.0 | In |
Call | 2024-06-14 CALL at $6.0 | 0.863 | 0.0248 | 0 | 2024-06-14 | 4.5 - 6.5 | 0.0 | In |
Call | 2024-06-14 CALL at $6.5 | 0.8731 | 0.0349 | 0 | 2024-06-14 | 3.0 - 6.1 | 0.0 | In |
Call | 2024-06-14 CALL at $7.0 | 0.8854 | 0.0445 | 0 | 2024-06-14 | 2.1 - 5.6 | 0.0 | In |
Call | 2024-06-14 CALL at $7.5 | 0.8394 | 0.052 | 0 | 2024-06-14 | 2.0 - 5.1 | 0.0 | In |
Call | 2024-06-14 CALL at $8.0 | 0.8001 | 0.059 | 0 | 2024-06-14 | 1.85 - 4.6 | 0.0 | In |
Call | 2024-06-14 CALL at $8.5 | 0.7711 | 0.0718 | 0 | 2024-06-14 | 1.3 - 4.2 | 0.0 | In |
Call | 2024-06-14 CALL at $9.0 | 0.7243 | 0.0777 | 0 | 2024-06-14 | 1.35 - 3.6 | 0.0 | In |
Call | 2024-06-14 CALL at $9.5 | 0.8027 | 0.1952 | 15 | 2024-06-14 | 1.15 - 1.3 | 0.95 | In |
Call | 2024-06-14 CALL at $10.0 | 0.6877 | 0.2622 | 2051 | 2024-06-14 | 0.8 - 0.9 | 0.8 | In |
Call | 2024-06-14 CALL at $10.5 | 0.5434 | 0.2816 | 512 | 2024-06-14 | 0.5 - 0.6 | 0.59 | In |
Call | 2024-06-14 CALL at $11.0 | 0.3971 | 0.2896 | 390 | 2024-06-14 | 0.3 - 0.4 | 0.35 | Out |
Call | 2024-06-14 CALL at $11.5 | 0.2718 | 0.2472 | 332 | 2024-06-14 | 0.2 - 0.25 | 0.21 | Out |
Call | 2024-06-14 CALL at $12.0 | 0.1967 | 0.1895 | 84 | 2024-06-14 | 0.1 - 0.2 | 0.15 | Out |
Call | 2024-06-14 CALL at $12.5 | 0.1451 | 0.145 | 103 | 2024-06-14 | 0.05 - 0.15 | 0.11 | Out |
Call | 2024-06-14 CALL at $13.0 | 0.1439 | 0.1192 | 68 | 2024-06-14 | 0.0 - 0.1 | 0.13 | Out |
Call | 2024-06-14 CALL at $14.5 | 0.061 | 0.0593 | 26 | 2024-06-14 | 0.0 - 0.5 | 0.05 | Out |
Call | 2024-06-14 CALL at $15.0 | 0.0574 | 0.0522 | 13 | 2024-06-14 | 0.0 - 1.5 | 0.05 | Out |
Put | 2024-06-14 PUT at $8.5 | -0.0888 | 0.0887 | 20 | 2024-06-14 | 0.0 - 0.25 | 0.08 | Out |
Put | 2024-06-14 PUT at $9.0 | -0.0919 | 0.1239 | 21 | 2024-06-14 | 0.05 - 0.1 | 0.06 | Out |
Put | 2024-06-14 PUT at $9.5 | -0.194 | 0.1967 | 70 | 2024-06-14 | 0.15 - 0.25 | 0.16 | Out |
Put | 2024-06-14 PUT at $10.0 | -0.3035 | 0.2775 | 1323 | 2024-06-14 | 0.25 - 0.35 | 0.26 | Out |
Put | 2024-06-14 PUT at $10.5 | -0.4579 | 0.3106 | 116 | 2024-06-14 | 0.45 - 0.55 | 0.48 | Out |
Put | 2024-06-14 PUT at $11.0 | -0.6012 | 0.2856 | 70 | 2024-06-14 | 0.75 - 0.85 | 1.0 | In |
Put | 2024-06-14 PUT at $11.5 | -0.73 | 0.2479 | 71 | 2024-06-14 | 1.1 - 1.25 | 1.15 | In |
Put | 2024-06-14 PUT at $12.0 | -0.9978 | 4.2598 | 28 | 2024-06-14 | 0.9 - 2.0 | 1.93 | In |
Put | 2024-06-14 PUT at $12.5 | -0.8575 | 0.1448 | 43 | 2024-06-14 | 1.95 - 2.15 | 1.05 | In |
Put | 2024-06-14 PUT at $13.0 | -0.7056 | 0.1086 | 125 | 2024-06-14 | 1.3 - 4.6 | 1.6 | In |
Put | 2024-06-14 PUT at $13.5 | -0.6286 | 0.0803 | 116 | 2024-06-14 | 2.8 - 5.0 | 1.9 | In |
Put | 2024-06-14 PUT at $14.0 | -0.6494 | 0.0764 | 0 | 2024-06-14 | 3.4 - 5.3 | 0.0 | In |
Put | 2024-06-14 PUT at $14.5 | -0.7201 | 0.079 | 52 | 2024-06-14 | 3.9 - 5.2 | 2.75 | In |
Put | 2024-06-14 PUT at $15.0 | -0.8137 | 0.0766 | 0 | 2024-06-14 | 3.1 - 6.4 | 0.0 | In |
Put | 2024-06-14 PUT at $15.5 | -0.8387 | 0.0698 | 0 | 2024-06-14 | 3.5 - 6.9 | 0.0 | In |
Put | 2024-06-14 PUT at $16.0 | -0.8105 | 0.0664 | 0 | 2024-06-14 | 4.0 - 7.6 | 0.0 | In |
Put | 2024-06-14 PUT at $16.5 | -0.8685 | 0.0586 | 0 | 2024-06-14 | 4.4 - 7.9 | 0.0 | In |
Put | 2024-06-14 PUT at $17.0 | -0.8064 | 0.0593 | 0 | 2024-06-14 | 5.1 - 8.6 | 0.0 | In |
Put | 2024-06-14 PUT at $17.5 | -0.8761 | 0.0517 | 0 | 2024-06-14 | 5.4 - 8.9 | 0.0 | In |
Put | 2024-06-14 PUT at $18.0 | -0.8446 | 0.0522 | 0 | 2024-06-14 | 6.0 - 9.5 | 0.0 | In |
Put | 2024-06-14 PUT at $19.0 | -0.7058 | 0.0487 | 0 | 2024-06-14 | 8.3 - 10.5 | 0.0 | In |
Put | 2024-06-14 PUT at $20.0 | -0.7398 | 0.0468 | 0 | 2024-06-14 | 9.0 - 11.5 | 0.0 | In |
Put | 2024-06-14 PUT at $21.0 | -0.7366 | 0.0443 | 0 | 2024-06-14 | 10.3 - 12.3 | 0.0 | In |
Put | 2024-06-14 PUT at $22.5 | -0.8816 | 0.0359 | 0 | 2024-06-14 | 10.4 - 14.0 | 0.0 | In |
Applied Opt Selling And Marketing Expenses Over Time
Selling And Marketing Expenses |
| Timeline |
Applied Opt Market Cap Over Time
Market Cap |
| Timeline |
Applied Total Stockholder Equity
Total Stockholder Equity |
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Applied Opt Corporate Management
| David Kuo | VP, General Counsel and Secretary | Profile | |
| Lindsay Savarese | Investor Relations | Profile | |
| Todd McCrum | Senior Access | Profile | |
| Jessica Hung | VP Controller | Profile |
Additional Information and Resources on Investing in Applied Stock
When determining whether Applied Opt offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Applied Opt's 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 Applied Opt Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Applied Opt Stock:Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Applied Opt. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons. For more detail on how to invest in Applied Stock please use our How to Invest in Applied Opt guide.You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Is Communications Equipment 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 Applied Opt. If investors know Applied 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 Applied Opt listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (1.79) | Revenue Per Share 5.982 | Quarterly Revenue Growth (0.23) | Return On Assets (0.08) | Return On Equity (0.34) |
The market value of Applied Opt is measured differently than its book value, which is the value of Applied that is recorded on the company's balance sheet. Investors also form their own opinion of Applied Opt's value that differs from its market value or its book value, called intrinsic value, which is Applied Opt'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 Applied Opt's market value can be influenced by many factors that don't directly affect Applied Opt'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 Applied Opt's value and its price as these two are different measures arrived at by different means. Investors typically determine if Applied Opt is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Applied Opt'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.