2024-05-17 CALL at $70.0 Option on Microchip Technology
| MCHP Stock | USD 91.36 1.90 2.12% |
2024-05-17 CALL at $70.0 is a CALL option contract on Microchip Technology's common stock with a strick price of 70.0 expiring on 2024-05-17. The contract was last traded on 2024-04-30 at 14:52:01 for $23.1 and, as of today, has 13 days remaining before the expiration. The option is currently trading at a bid price of $21.3, and an ask price of $22.8. The implied volatility as of the 4th of May is 103.97.
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Microchip Technology. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in rate. To learn how to invest in Microchip Stock, please use our How to Invest in Microchip Technology guide.
Microchip |
Call options on Microchip Technology give the investor right to buy Microchip Stock at a specified price within a specific period. The strike price represents the predetermined price at which a call buyer can buy Microchip Stock. Call options may be purchased for speculation or sold for income purposes, or simply combined for various spread or combination strategies. If Microchip Technology's price is above the strike price at expiry, the profit is the current Microchip Technology's stock price, minus the strike price and the premium.
Rule 16 of 2024-05-17 Option Contract
The options market is anticipating that Microchip Technology will have an average daily up or down price movement of about 6.5% per day over the life of the option. With Microchip Technology trading at USD 91.36, that is roughly USD 5.94. If you think that the market is fully understating Microchip Technology's daily price movement you should consider buying Microchip Technology options at that current volatility level of 103.97%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
In The Money Call Option on Microchip Technology
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 Microchip Technology 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 Microchip Stock 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 $70.0 |
| Expires On | 2024-05-17 |
| Days Before Expriration | 13 |
| Last Traded On | 2024-04-30 14:52:01 |
| Contract Period | MONTHLY |
| Open Interest | 10 |
| Current Trading Volume | 0.0 |
| Strike Price | 70.0 |
| Last Traded At | 23.1 |
| Current Price Spread | 21.3 | 22.8 |
| Rule 16 Daily Up or Down | USD5.94 |
Microchip short CALL Option Greeks
Microchip Technology's Option Greeks for the contract ending on 2024-05-17 at a strike price of 70.0 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 Microchip Technology's option greeks, its implied volatility helps estimate the risk of Microchip Technology stock implied by the prices of the options on Microchip Technology's stock.
| Delta | 0.9274 | |
| Gamma | 0.0076 | |
| Theta | -0.0991 | |
| Vega | 0.0236 | |
| Rho | 0.0223 |
Microchip long CALL Option Payoff at expiration
Buying Microchip Technology's call option is the simplest of option trades. A call option on Microchip Stock gives investors the right (but not the obligation) to purchase Microchip Technology at the given strike price. Therefore Microchip Technology's call intrinsic value or payoff at expiration depends on where the Microchip Stock price is relative to the call option strike price. The strike price of 70.0 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 Microchip Technology's price. Finally, at the break-even point of 92.05, the line crosses zero, and trading Microchip becomes profitable.
Profit |
| Microchip Technology Price At Expiration |
Microchip short CALL Option Payoff at expiration
By selling Microchip Technology's call option, the investors signals his or her bearish sentiment. A short position in a call option written on Microchip Technology will generally make money when the underlying price goes down. Therefore Microchip Technology's call intrinsic value or payoff at expiration depends on where the Microchip Stock price is relative to the call option strike price. The strike price of 70.0 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 Microchip Technology's price. Finally, at the break-even point of 92.05, the line crosses zero, and trading Microchip becomes disadvantageous with no downside limits.
Profit |
| Microchip Technology Price At Expiration |
Microchip Technology Available Call Options
Microchip Technology's option chain is a display of a range of information that helps investors for ways to trade options on Microchip. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Microchip. It also shows strike prices and maturity days for a Microchip Technology 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 $42.5 | 0.9406 | 0.0021 | 0 | 2024-05-17 | 46.9 - 50.7 | 0.0 | In |
Call | 2024-05-17 CALL at $45.0 | 0.9403 | 0.0023 | 0 | 2024-05-17 | 44.4 - 48.0 | 0.0 | In |
Call | 2024-05-17 CALL at $47.5 | 0.932 | 0.0027 | 0 | 2024-05-17 | 41.9 - 45.7 | 0.0 | In |
Call | 2024-05-17 CALL at $50.0 | 0.9233 | 0.003 | 0 | 2024-05-17 | 39.3 - 43.4 | 0.0 | In |
Call | 2024-05-17 CALL at $55.0 | 0.917 | 0.0038 | 0 | 2024-05-17 | 34.6 - 38.2 | 0.0 | In |
Call | 2024-05-17 CALL at $60.0 | 0.9648 | 0.0034 | 0 | 2024-05-17 | 30.2 - 33.3 | 0.0 | In |
Call | 2024-05-17 CALL at $65.0 | 0.9034 | 0.0063 | 0 | 2024-05-17 | 24.7 - 27.8 | 0.0 | In |
Call | 2024-05-17 CALL at $70.0 | 0.9274 | 0.0076 | 10 | 2024-05-17 | 21.3 - 22.8 | 23.1 | In |
Call | 2024-05-17 CALL at $75.0 | 0.9548 | 0.0085 | 38 | 2024-05-17 | 16.4 - 16.9 | 7.7 | In |
Call | 2024-05-17 CALL at $77.5 | 0.906 | 0.0138 | 22 | 2024-05-17 | 14.0 - 15.0 | 13.8 | In |
Call | 2024-05-17 CALL at $80.0 | 0.9109 | 0.017 | 231 | 2024-05-17 | 11.6 - 12.1 | 9.7 | In |
Call | 2024-05-17 CALL at $82.5 | 0.8842 | 0.0238 | 246 | 2024-05-17 | 7.5 - 9.8 | 9.43 | In |
Call | 2024-05-17 CALL at $85.0 | 0.7943 | 0.0329 | 307 | 2024-05-17 | 6.6 - 8.8 | 7.5 | In |
Call | 2024-05-17 CALL at $87.5 | 0.6927 | 0.0395 | 435 | 2024-05-17 | 5.7 - 5.9 | 5.4 | In |
Call | 2024-05-17 CALL at $90.0 | 0.5847 | 0.0438 | 3746 | 2024-05-17 | 4.0 - 4.3 | 4.3 | In |
Call | 2024-05-17 CALL at $92.5 | 0.4687 | 0.0479 | 1765 | 2024-05-17 | 2.8 - 3.1 | 2.84 | Out |
Call | 2024-05-17 CALL at $95.0 | 0.3539 | 0.0451 | 884 | 2024-05-17 | 1.8 - 2.0 | 1.88 | Out |
Call | 2024-05-17 CALL at $97.5 | 0.2555 | 0.0387 | 753 | 2024-05-17 | 1.2 - 1.35 | 1.22 | Out |
Call | 2024-05-17 CALL at $100.0 | 0.1747 | 0.031 | 1717 | 2024-05-17 | 0.7 - 0.8 | 0.75 | Out |
Call | 2024-05-17 CALL at $105.0 | 0.0794 | 0.0171 | 314 | 2024-05-17 | 0.25 - 0.35 | 0.3 | Out |
Call | 2024-05-17 CALL at $110.0 | 0.0408 | 0.0093 | 111 | 2024-05-17 | 0.0 - 0.15 | 0.15 | Out |
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Our tools can tell you how much better you can do entering a position in Microchip Technology 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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Microchip Technology Corporate Directors
Microchip Technology corporate directors refer to members of a Microchip Technology board of directors. The board of directors generally takes responsibility for the Microchip Technology's affairs and long-term direction of the entity. A corporate director does not make decisions for the corporation on his own. As a member of the board of directors, she or he must function as a part of a group that makes decisions on behalf of the business only by the board of directors' meetings. To pass a resolution, a majority of Microchip Technology's board members must vote for the resolution. The Microchip Technology board of directors' duties also include the election, removal, and supervision of officers, including the adoption, amendment, and repeal of bylaws.| Wade Meyercord | Independent Director | Profile | |
| Matthew Chapman | Independent Director | Profile | |
| Esther Johnson | Independent Director | Profile | |
| L Day | Independent Director | Profile |
Already Invested in Microchip Technology?
The danger of trading Microchip Technology is mainly related to its market volatility and Company 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 Microchip Technology 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 Microchip Technology. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Microchip Technology 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 Microchip Technology is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Microchip Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Microchip Technology Stock. Highlighted below are key reports to facilitate an investment decision about Microchip Technology Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Microchip Technology. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in rate. To learn how to invest in Microchip Stock, please use our How to Invest in Microchip Technology guide.Note that the Microchip Technology information on this page should be used as a complementary analysis to other Microchip Technology's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Complementary Tools for Microchip Stock analysis
When running Microchip Technology's price analysis, check to measure Microchip Technology's 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 Microchip Technology is operating at the current time. Most of Microchip Technology's value examination focuses on studying past and present price action to predict the probability of Microchip Technology's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Microchip Technology's price. Additionally, you may evaluate how the addition of Microchip Technology to your portfolios can decrease your overall portfolio volatility.
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Is Microchip Technology's 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 Microchip Technology. If investors know Microchip 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 Microchip Technology 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 (0.26) | Dividend Share 1.59 | Earnings Share 4.28 | Revenue Per Share 15.7 | Quarterly Revenue Growth (0.19) |
The market value of Microchip Technology is measured differently than its book value, which is the value of Microchip that is recorded on the company's balance sheet. Investors also form their own opinion of Microchip Technology's value that differs from its market value or its book value, called intrinsic value, which is Microchip Technology'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 Microchip Technology's market value can be influenced by many factors that don't directly affect Microchip Technology'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 Microchip Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine if Microchip Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Microchip Technology'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.