2024-05-17 PUT at $8.0 Option on Prospect Capital
| PSEC Stock | USD 5.66 0.07 1.25% |
2024-05-17 PUT at $8.0 is a PUT option contract on Prospect Capital's common stock with a strick price of 8.0 expiring on 2024-05-17. The contract was last traded on 2024-01-03 at 10:30:11 for $2.19 and, as of today, has 0 days remaining before the expiration. The option is currently trading at a bid price of $1.6, and an ask price of $2.6. The implied volatility as of the 17th of May 2024 is 700.01.
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Prospect Capital. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in income. For information on how to trade Prospect Stock refer to our How to Trade Prospect Stock guide.
Prospect |
A put option written on Prospect Capital becomes more valuable as the price of Prospect Capital drops. Conversely, Prospect Capital's put option loses its value as Prospect Stock rises. When exercised, put options on Prospect Capital produce a short position in Prospect Stock. Because of this protective nature, they are typically used either for hedging purposes or to capitalize on Prospect Capital's downside price movement.
Rule 16 of 2024-05-17 Option Contract
The options market is anticipating that Prospect Capital will have an average daily up or down price movement of about 43.75% per day over the life of the option. With Prospect Capital trading at USD 5.66, that is roughly USD 2.48. If you think that the market is fully understating Prospect Capital's daily price movement you should consider buying Prospect Capital options at that current volatility level of 700.01%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
In The Money Put Option on Prospect Capital
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 Prospect Capital 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 Prospect Stock have intrinsic value and are priced higher than out-of-the-money options in the same chain, their volatilities are relatively smaller.
| Put Contract Name | 2024-05-17 PUT at $8.0 |
| Expires On | 2024-05-17 |
| Days Before Expriration | 0 |
| Last Traded On | 2024-01-03 10:30:11 |
| Contract Period | MONTHLY |
| Open Interest | 0 |
| Current Trading Volume | 0.0 |
| Strike Price | 8.0 |
| Last Traded At | 2.19 |
| Current Price Spread | 1.6 | 2.6 |
| Rule 16 Daily Up or Down | USD2.48 |
Prospect short PUT Option Greeks
Prospect Capital's Option Greeks for the contract ending on 2024-05-17 at a strike price of 8.0 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 Prospect Capital's option greeks, its implied volatility helps estimate the risk of Prospect Capital stock implied by the prices of the options on Prospect Capital's stock.
| Delta | -0.7863 | |
| Gamma | 0.1427 | |
| Theta | -0.3009 | |
| Vega | 8.0E-4 | |
| Rho | -2.0E-4 |
Prospect long PUT Option Payoff at expiration
Put options written on Prospect Capital grant holders of the option the right to sell a specified amount of Prospect Capital at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Prospect Stock cannot fall below zero, the put buyer does gain as the price drops. So, purchasing a put option on Prospect Capital is like buying insurance aginst Prospect Capital's downside shift.
Profit |
| Prospect Capital Price At Expiration |
Prospect short PUT Option Payoff at expiration
By selling Prospect Capital's put option, the investors signal their bearish sentiment. A short position in a put option written on Prospect Capital will generally make money when the underlying price is above the strike price. Therefore Prospect Capital's put payoff at expiration depends on where the Prospect Stock price is relative to the put option strike price. The breakeven price of 5.4 is the critical point that divides the payoff function into two parts. Below the breakeven price, the payoff is dropping and negative (the seller makes a loss). Above the breakeven price, the payoff line is upward sloping as the option payoff increases in proportion to Prospect Capital's price. Finally, at the strike price of 8.0, the payoff chart is constant and positive.
Profit |
| Prospect Capital Price At Expiration |
Prospect Capital Available Put Options
Prospect Capital's option chain is a display of a range of information that helps investors for ways to trade options on Prospect. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Prospect. It also shows strike prices and maturity days for a Prospect Capital 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 | |||
Put | 2024-05-17 PUT at $6.0 | -0.8395 | 0.6631 | 1503 | 2024-05-17 | 0.25 - 0.5 | 0.42 | In |
Put | 2024-05-17 PUT at $7.0 | -0.9084 | 0.1867 | 104 | 2024-05-17 | 1.25 - 1.6 | 1.25 | In |
Put | 2024-05-17 PUT at $8.0 | -0.7863 | 0.1427 | 0 | 2024-05-17 | 1.6 - 2.6 | 2.19 | In |
Put | 2024-05-17 PUT at $9.0 | -0.9146 | 0.0898 | 0 | 2024-05-17 | 3.3 - 3.6 | 0.0 | In |
Put | 2024-05-17 PUT at $10.0 | -0.8249 | 0.0938 | 0 | 2024-05-17 | 3.4 - 4.6 | 5.45 | In |
Put | 2024-05-17 PUT at $11.0 | -0.8357 | 0.0817 | 1 | 2024-05-17 | 4.4 - 5.6 | 5.3 | In |
Put | 2024-05-17 PUT at $12.0 | -0.8438 | 0.0731 | 1 | 2024-05-17 | 6.1 - 6.6 | 6.2 | In |
Be your own money manager
Our tools can tell you how much better you can do entering a position in Prospect Capital 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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| All Next | Launch Module |
Prospect Capital Corporate Management
Elected by the shareholders, the Prospect Capital's board of directors comprises two types of representatives: Prospect Capital inside directors who are chosen from within the company, and outside directors, selected externally and held independent of Prospect. The board's role is to monitor Prospect Capital's management team and ensure that shareholders' interests are well served. Prospect Capital's inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, Prospect Capital's outside directors are responsible for providing unbiased perspectives on the board's policies.
| Bart JD | Managing Director | Profile | |
| Jonathan Li | Chief Counsel | Profile | |
| Kristin CPA | Treasurer, CFO | Profile | |
| JD III | Chairman CEO | Profile | |
| Alexandra CPA | Vice Accounting | Profile |
Already Invested in Prospect Capital?
The danger of trading Prospect Capital 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 Prospect Capital 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 Prospect Capital. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Prospect Capital 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 Prospect Capital offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Prospect Capital'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 Prospect Capital Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Prospect Capital Stock: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Prospect Capital. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in income. For information on how to trade Prospect Stock refer to our How to Trade Prospect Stock guide.Note that the Prospect Capital information on this page should be used as a complementary analysis to other Prospect Capital'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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Complementary Tools for Prospect Stock analysis
When running Prospect Capital's price analysis, check to measure Prospect Capital'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 Prospect Capital is operating at the current time. Most of Prospect Capital's value examination focuses on studying past and present price action to predict the probability of Prospect Capital's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Prospect Capital's price. Additionally, you may evaluate how the addition of Prospect Capital to your portfolios can decrease your overall portfolio volatility.
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Is Prospect Capital'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 Prospect Capital. If investors know Prospect 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 Prospect Capital 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 (0.78) | Dividend Share 0.72 | Earnings Share (0.20) | Revenue Per Share 2.183 | Quarterly Revenue Growth (0.01) |
The market value of Prospect Capital is measured differently than its book value, which is the value of Prospect that is recorded on the company's balance sheet. Investors also form their own opinion of Prospect Capital's value that differs from its market value or its book value, called intrinsic value, which is Prospect Capital'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 Prospect Capital's market value can be influenced by many factors that don't directly affect Prospect Capital'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 Prospect Capital's value and its price as these two are different measures arrived at by different means. Investors typically determine if Prospect Capital is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Prospect Capital'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.