PSEC240517P00009000 Option on Prospect Capital
| PSEC Stock | USD 5.59 0.03 0.54% |
Prospect Capital's latest option contracts expiring on 2024-06-21 are carrying combined implied volatility of 59.35 with a put-to-call open interest ratio of 5.4 over 22 outstanding agreements suggesting investors are buying way more puts than calls on contracts expiring on 2024-06-21. The current put volume is at 1 K, with calls trading at the volume of 17.0. This yields a 61.59 put-to-call volume ratio.
Open Interest Against 2024-06-21 Option Contracts
2024-06-21
The chart above shows Prospect Capital's 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. Prospect Capital's open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Prospect Capital's option, there is no secondary market available for investors to trade.
Prospect Capital's option chain provides insight into all available option contracts written on Prospect Capital's stock. Investors can see outstanding put and call contracts with pricing information and greeks for a given expiration period. In addition, each of Prospect Capital's 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 Prospect option contract.
In The Money vs. Out of Money Option Contracts on Prospect Capital
Analyzing Prospect Capital's in-the-money options over time can help investors to take a profitable long position in Prospect Capital regardless of its overall volatility. This is especially true when Prospect Capital's options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money Prospect Capital's options could be used as guardians of the underlying stock as they move almost dollar for dollar with Prospect Capital's stock while costing only a fraction of its price.
Prospect Capital's stock options are financial instruments that give investors the right to buy or sell shares of Prospect Capital common stock at a specified price for a given time period. Generally speaking, an option to purchase or sell Prospect stock makes it part of the underlying stock when the option's price is tied to the movement of the underlying stock. If Prospect Capital's stock price goes up or down, the stock options follow.
At present, Prospect Capital's Issuance Of Capital Stock is projected to increase significantly based on the last few years of reporting. Prospect Capital In The Money Call Balance
When Prospect Capital's strike price is surpassing the current stock price, the option contract against Prospect Capital stock is said to be in the money. When it comes to buying Prospect Capital's 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 Prospect Capital 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.
Prospect Current Options Market Mood
Prospect Capital's 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 Prospect 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
Put-to-Call Volume
Most options investors, including buyers and sellers of Prospect Capital's calls and puts, are not very successful. It is estimated that an average options trader loses somewhere between 80% to 90% of the time. Prospect Capital's 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 Prospect Capital's 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 Prospect contract
Base on the Rule 16, the options market is currently suggesting that Prospect Capital will have an average daily up or down price movement of about 3.71% per day over the life of the 2024-06-21 option contract. With Prospect Capital trading at USD 5.59, that is roughly USD 0.21. If you think that the market is fully incorporating Prospect Capital's daily price movement you should consider buying Prospect Capital options at the current volatility level of 59.35%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
Prospect |
Purchasing Prospect Capital 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" Prospect calls. Remember, the seller must deliver Prospect Capital stock to the call owner when a call is exercised.
Prospect Capital Option Chain
When Prospect Capital's strike price is surpassing the current stock price, the option contract against Prospect Capital 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.
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 | |||
Call | 2024-06-21 CALL at $1.0 | 0.9691 | 0.0077 | 2 | 2024-06-21 | 4.0 - 4.8 | 4.8 | In |
Call | 2024-06-21 CALL at $2.0 | 0.9302 | 0.0127 | 0 | 2024-06-21 | 2.55 - 4.5 | 2.45 | In |
Call | 2024-06-21 CALL at $3.0 | 0.9141 | 0.0485 | 1 | 2024-06-21 | 1.65 - 2.75 | 2.55 | In |
Call | 2024-06-21 CALL at $4.0 | 0.8873 | 0.1075 | 15 | 2024-06-21 | 0.6 - 1.7 | 1.65 | In |
Call | 2024-06-21 CALL at $5.0 | 0.8397 | 0.3632 | 326 | 2024-06-21 | 0.5 - 0.65 | 0.5 | In |
Call | 2024-06-21 CALL at $6.0 | 0.1564 | 0.6346 | 9220 | 2024-06-21 | 0.0 - 0.05 | 0.03 | Out |
Call | 2024-06-21 CALL at $7.0 | 0.0818 | 0.1768 | 3118 | 2024-06-21 | 0.0 - 0.05 | 0.03 | Out |
Put | 2024-06-21 PUT at $5.0 | -0.1465 | 0.3647 | 66717 | 2024-06-21 | 0.05 - 0.1 | 0.05 | Out |
Put | 2024-06-21 PUT at $6.0 | -0.7913 | 0.622 | 965 | 2024-06-21 | 0.35 - 0.5 | 0.46 | In |
Put | 2024-06-21 PUT at $7.0 | -0.7253 | 0.199 | 270 | 2024-06-21 | 0.65 - 1.65 | 1.34 | In |
Put | 2024-06-21 PUT at $8.0 | -0.9195 | 0.1133 | 5 | 2024-06-21 | 1.4 - 3.5 | 2.4 | In |
Put | 2024-06-21 PUT at $9.0 | -0.7673 | 0.112 | 4 | 2024-06-21 | 2.75 - 3.7 | 3.8 | In |
Put | 2024-06-21 PUT at $10.0 | -0.9374 | 0.0645 | 20 | 2024-06-21 | 4.2 - 4.7 | 4.4 | In |
Put | 2024-06-21 PUT at $12.0 | -0.9456 | 0.0468 | 0 | 2024-06-21 | 6.2 - 6.7 | 6.1 | In |
Prospect Capital Market Cap Over Time
Market Cap |
| Timeline |
Prospect Total Stockholder Equity
Total Stockholder Equity |
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Prospect Capital Corporate Management
| 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 |
Additional Information and Resources on Investing in Prospect Stock
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 closely tied 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.You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Is Asset Management & Custody Banks 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 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 0.3 | Revenue Per Share 2.132 | Quarterly Revenue Growth (0.06) |
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.