2024-05-17 CALL at $38.0 Option on First Trust Senior
| FTSL Etf | USD 46.16 0.05 0.11% |
2024-05-17 CALL at $38.0 is a CALL option contract on First Trust's common stock with a strick price of 38.0 expiring on 2024-05-17. The contract was not traded in recent days and, as of today, has 14 days remaining before the expiration. The option is currently trading at a bid price of $6.6, and an ask price of $9.7. The implied volatility as of the 3rd of May is 56.86.
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in First Trust Senior. Also, note that the market value of any etf could be tightly coupled with the direction of predictive economic indicators such as signals in state.
First |
Call options on First Trust give the investor right to buy First Etf at a specified price within a specific period. The strike price represents the predetermined price at which a call buyer can buy First Etf. Call options may be purchased for speculation or sold for income purposes, or simply combined for various spread or combination strategies. If First Trust's price is above the strike price at expiry, the profit is the current First Trust's stock price, minus the strike price and the premium.
Rule 16 of 2024-05-17 Option Contract
The options market is anticipating that First Trust Senior will have an average daily up or down price movement of about 3.55% per day over the life of the option. With First Trust trading at USD 46.16, that is roughly USD 1.64. If you think that the market is fully understating First Trust's daily price movement you should consider buying First Trust Senior options at that current volatility level of 56.86%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
In The Money Call Option on First Trust
An 'In The Money' option is one with a strike price that the current stock price has already surpassed. Some options investors can hedge their First Trust positions using in-the-money options. They may also want to buy options with some intrinsic value, not just time value. However, because in-the-money options on First Etf have intrinsic value and are priced higher than out-of-the-money options in the same chain, their volatilities are relatively smaller.
| Call Contract Name | 2024-05-17 CALL at $38.0 |
| Expires On | 2024-05-17 |
| Days Before Expriration | 14 |
| Last Traded On | 0000-00-00 00:00:00 |
| Contract Period | MONTHLY |
| Open Interest | 0 |
| Current Trading Volume | 0.0 |
| Strike Price | 38.0 |
| Last Traded At | 0.0 |
| Current Price Spread | 6.6 | 9.7 |
| Rule 16 Daily Up or Down | USD1.64 |
First short CALL Option Greeks
First Trust's Option Greeks for the contract ending on 2024-05-17 at a strike price of 38.0 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 First Trust's option greeks, its implied volatility helps estimate the risk of First Trust stock implied by the prices of the options on First Trust's stock.
| Delta | 0.953 | |
| Gamma | 0.0179 | |
| Theta | -0.022 | |
| Vega | 0.0094 | |
| Rho | 0.0156 |
First long CALL Option Payoff at expiration
Buying First Trust's call option is the simplest of option trades. A call option on First Etf gives investors the right (but not the obligation) to purchase First Trust at the given strike price. Therefore First Trust's call intrinsic value or payoff at expiration depends on where the First Etf price is relative to the call option strike price. The strike price of 38.0 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 First Trust's price. Finally, at the break-even point of 46.15, the line crosses zero, and trading First becomes profitable.
Profit |
| First Trust Price At Expiration |
First short CALL Option Payoff at expiration
By selling First Trust's call option, the investors signals his or her bearish sentiment. A short position in a call option written on First Trust will generally make money when the underlying price goes down. Therefore First Trust's call intrinsic value or payoff at expiration depends on where the First Etf price is relative to the call option strike price. The strike price of 38.0 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 First Trust's price. Finally, at the break-even point of 46.15, the line crosses zero, and trading First becomes disadvantageous with no downside limits.
Profit |
| First Trust Price At Expiration |
First Trust Senior Available Call Options
First Trust's option chain is a display of a range of information that helps investors for ways to trade options on First. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for First. It also shows strike prices and maturity days for a First Trust 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 | 2024-05-17 CALL at $35.0 | 0.9625 | 0.011 | 0 | 2024-05-17 | 9.6 - 12.7 | 0.0 | In |
Call | 2024-05-17 CALL at $36.0 | 0.9598 | 0.0128 | 0 | 2024-05-17 | 8.6 - 11.7 | 0.0 | In |
Call | 2024-05-17 CALL at $37.0 | 0.9567 | 0.015 | 0 | 2024-05-17 | 7.6 - 10.7 | 0.0 | In |
Call | 2024-05-17 CALL at $38.0 | 0.953 | 0.0179 | 0 | 2024-05-17 | 6.6 - 9.7 | 0.0 | In |
Call | 2024-05-17 CALL at $39.0 | 0.9485 | 0.0218 | 0 | 2024-05-17 | 5.6 - 8.7 | 0.0 | In |
Call | 2024-05-17 CALL at $40.0 | 0.943 | 0.0271 | 0 | 2024-05-17 | 4.6 - 7.7 | 0.0 | In |
Call | 2024-05-17 CALL at $41.0 | 0.9357 | 0.0348 | 0 | 2024-05-17 | 3.6 - 6.7 | 0.0 | In |
Call | 2024-05-17 CALL at $42.0 | 0.9259 | 0.0468 | 0 | 2024-05-17 | 2.6 - 5.7 | 0.0 | In |
Call | 2024-05-17 CALL at $43.0 | 0.9115 | 0.0673 | 0 | 2024-05-17 | 1.6 - 4.7 | 0.0 | In |
Call | 2024-05-17 CALL at $44.0 | 0.8584 | 0.1123 | 0 | 2024-05-17 | 0.7 - 3.7 | 0.0 | In |
Be your own money manager
Our tools can tell you how much better you can do entering a position in First Trust 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.Did you try this?
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Already Invested in First Trust Senior?
The danger of trading First Trust Senior is mainly related to its market volatility and ETF specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of First Trust is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than First Trust. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile First Trust Senior is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether First Trust Senior is a strong investment it is important to analyze First Trust'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 First Trust's future performance. For an informed investment choice regarding First Etf, refer to the following important reports: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in First Trust Senior. Also, note that the market value of any etf could be tightly coupled with the direction of predictive economic indicators such as signals in state. You can also try the Stocks Directory module to find actively traded stocks across global markets.
The market value of First Trust Senior is measured differently than its book value, which is the value of First that is recorded on the company's balance sheet. Investors also form their own opinion of First Trust's value that differs from its market value or its book value, called intrinsic value, which is First Trust'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 First Trust's market value can be influenced by many factors that don't directly affect First Trust'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 First Trust's value and its price as these two are different measures arrived at by different means. Investors typically determine if First Trust is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, First Trust'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.