Darden Restaurants' option chain provides insight into all available option contracts written on Darden Restaurants' stock. Investors can see outstanding put and call contracts with pricing information and greeks for a given expiration period. In addition, each of Darden Restaurants' 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 Darden option contract.
In The Money vs. Out of Money Option Contracts on Darden Restaurants
Analyzing Darden Restaurants' in-the-money options over time can help investors to take a profitable long position in Darden Restaurants regardless of its overall volatility. This is especially true when Darden Restaurants' options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money Darden Restaurants' options could be used as guardians of the underlying stock as they move almost dollar for dollar with Darden Restaurants' stock while costing only a fraction of its price.
Darden Restaurants' latest option contracts expiring on 2023-12-15 are carrying combined implied volatility of 31.06 with a put-to-call open interest ratio of 0.93 over 54 outstanding agreements suggesting investors are buying slightly more calls than puts on contracts expiring on 2023-12-15. The current put volume is at 139, with calls trading at the volume of 352. This yields a 0.39 put-to-call volume ratio. The Darden Restaurants option chain provides detailed quote and price information for the current Darden Restaurants option contracts. It shows all of Darden Restaurants' listed puts, calls, expiration dates, strike prices, and other pricing information.
Open Interest Against 2023-12-15 Option Contracts
Darden Restaurants option prices can potentially be used to forecast stock returns because most option chains provide information not only about the current prices but also about the future conditions in Darden Restaurants' lending market. For example, when Darden Restaurants' puts are not actively trading or completely missing in the marketplace, investors can use it to internalize expected shorting costs. So if an investor is writing a put option on Darden Restaurants, he or she must hedge the risk by shorting Darden Restaurants stock over its option's life.
The chart above shows Darden Restaurants' 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. Darden Restaurants' open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Darden Restaurants' option, there is no secondary market available for investors to trade.
Darden Restaurants Maximum Pain Price across 2023-12-15 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 Darden Restaurants 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.
Darden Restaurants' stock options are financial instruments that give investors the right to buy or sell shares of Darden Restaurants common stock at a specified price for a given time period. Generally speaking, an option to purchase or sell Darden stock makes it part of the underlying stock when the option's price is tied to the movement of the underlying stock. If Darden Restaurants' stock price goes up or down, the stock options follow.Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Darden Restaurants. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in producer price index.
Please note that buying 'in-the-money' options on Darden Restaurants lessens the impact of time decay, as they carry both intrinsic and time value. So, even if Darden Restaurants' value remains static through the expiration date, the investor can sell to close an 'in-the-money' option to avoid a potential loss. However, in-the-money Darden Restaurants contracts are usually more expensive to enter than their out-of-the-money counterparts. So keep in mind that while the payoffs on an in-the-money trade can be high, the investors could ultimately experience a more consequential loss if Darden Stock moves the wrong way.The current Net Income Common Stock is estimated to decrease to about 489.2 M
Darden Restaurants In The Money Call Balance
When Darden Restaurants' strike price is surpassing the current stock price, the option contract against Darden Restaurants stock is said to be in the money. When it comes to buying Darden Restaurants' 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 Darden Restaurants 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.
Darden Current Options Market Mood
Darden Restaurants' 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 Darden 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
Most options investors, including buyers and sellers of Darden Restaurants' calls and puts, are not very successful. It is estimated that an average options trader loses somewhere between 80% to 90% of the time. Darden Restaurants' 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 Darden Restaurants' 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 Darden contract
Base on the Rule 16, the options market is currently suggesting that Darden Restaurants will have an average daily up or down price movement of about 1.94% per day over the life of the 2023-12-15 option contract. With Darden Restaurants trading at USD161.0, that is roughly USD3.13. If you think that the market is fully incorporating Darden Restaurants' daily price movement you should consider buying Darden Restaurants options at the current volatility level of 31.06%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
Purchasing Darden Restaurants 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" Darden calls. Remember, the seller must deliver Darden Restaurants stock to the call owner when a call is exercised.
Darden Restaurants Option Chain
When Darden Restaurants' strike price is surpassing the current stock price, the option contract against Darden Restaurants 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.2023-12-152024-01-192024-04-192024-06-212024-07-192025-01-172026-01-16Darden Restaurants' option chain is a display of a range of information that helps investors for ways to trade options on Darden. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Darden. It also shows strike prices and maturity days for a Darden Restaurants 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.
Darden Restaurants Historical Liabilities
While analyzing the current debt level is an essential aspect of forecasting the current year budgeting needs of Darden Restaurants, understanding its historical liability is critical in projecting Darden Restaurants' future earnings, especially during periods of low and high inflation and deflation. Many analysts look at the trend in assets and liabilities and evaluate how Darden Restaurants uses its financing power over time.
Be your own money managerOur tools can tell you how much better you can do entering a position in Darden Restaurants without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.
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Pair Trading with Darden RestaurantsOne of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Darden Restaurants position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Darden Restaurants will appreciate offsetting losses from the drop in the long position's value. When determining whether Darden Restaurants offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Darden Restaurants' 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 Darden Restaurants Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Darden Restaurants Stock:
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Darden Restaurants. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in producer price index.For more detail on how to invest in Darden Stock please use our How to Invest in Darden Restaurants guide.You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Complementary Tools for Darden Stock analysis
When running Darden Restaurants' price analysis, check to measure Darden Restaurants' 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 Darden Restaurants is operating at the current time. Most of Darden Restaurants' value examination focuses on studying past and present price action to predict the probability of Darden Restaurants' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Darden Restaurants' price. Additionally, you may evaluate how the addition of Darden Restaurants to your portfolios can decrease your overall portfolio volatility.
Is Darden Restaurants' industry 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 Darden Restaurants. If investors know Darden 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 Darden Restaurants listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
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Quarterly Revenue Growth
The market value of Darden Restaurants is measured differently than its book value, which is the value of Darden that is recorded on the company's balance sheet. Investors also form their own opinion of Darden Restaurants' value that differs from its market value or its book value, called intrinsic value, which is Darden Restaurants' 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 Darden Restaurants' market value can be influenced by many factors that don't directly affect Darden Restaurants' 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 Darden Restaurants' value and its price as these two are different measures arrived at by different means. Investors typically determine if Darden Restaurants is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Darden Restaurants' 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.