2024-06-07 CALL at $190.0 Option on Boeing

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

Boeing's Option Greeks for the contract ending on 2024-06-07 at a strike price of 190.0 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 Boeing's option greeks, its implied volatility helps estimate the risk of Boeing stock implied by the prices of the options on Boeing's stock.

Buying Boeing's call option is the simplest of option trades. A call option on Boeing Stock gives investors the right (but not the obligation) to purchase Boeing at the given strike price. Therefore Boeing's call intrinsic value or payoff at expiration depends on where the Boeing Stock price is relative to the call option strike price. The strike price of 190.0 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 Boeing's price. Finally, at the break-even point of 191.79, the line crosses zero, and trading Boeing becomes profitable.

By selling Boeing's call option, the investors signals his or her bearish sentiment. A short position in a call option written on Boeing will generally make money when the underlying price goes down. Therefore Boeing's call intrinsic value or payoff at expiration depends on where the Boeing Stock price is relative to the call option strike price. The strike price of 190.0 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 Boeing's price. Finally, at the break-even point of 191.79, the line crosses zero, and trading Boeing becomes disadvantageous with no downside limits.

Boeing's option chain is a display of a range of information that helps investors for ways to trade options on Boeing. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Boeing. It also shows strike prices and maturity days for a Boeing 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 Trending Equities to better understand how to build diversified portfolios, which includes a position in The Boeing. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation. You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

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