ProShares UltraShort Stock Options
| SDS Etf | USD 26.80 0.02 0.07% |
ProShares UltraShort's option chain provides insight into all available option contracts written on ProShares UltraShort's stock. Investors can see outstanding put and call contracts with pricing information and greeks for a given expiration period. In addition, each of ProShares UltraShort'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 ProShares option contract.
In The Money vs. Out of Money Option Contracts on ProShares UltraShort
Analyzing ProShares UltraShort's in-the-money options over time can help investors to take a profitable long position in ProShares UltraShort regardless of its overall volatility. This is especially true when ProShares UltraShort's options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money ProShares UltraShort's options could be used as guardians of the underlying stock as they move almost dollar for dollar with ProShares UltraShort's stock while costing only a fraction of its price.
ProShares UltraShort's latest option contracts expiring on 2024-05-17 are carrying combined implied volatility of 44.26 with a put-to-call open interest ratio of 0.32 over 56 outstanding agreements suggesting investors are buying way more calls than puts on contracts expiring on 2024-05-17. The current put volume is at 129, with calls trading at the volume of 882. This yields a 0.15 put-to-call volume ratio. The ProShares UltraShort option chain provides detailed quote and price information for the current ProShares UltraShort SP500 option contracts. It shows all of ProShares UltraShort's listed puts, calls, expiration dates, strike prices, and other pricing information.
Open Interest Against 2024-05-17 Option Contracts
ProShares UltraShort 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 ProShares UltraShort's lending market. For example, when ProShares UltraShort's 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 ProShares UltraShort, he or she must hedge the risk by shorting ProShares UltraShort stock over its option's life.
2024-05-17
The chart above shows ProShares UltraShort'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. ProShares UltraShort's open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for ProShares UltraShort's option, there is no secondary market available for investors to trade.
ProShares UltraShort Maximum Pain Price across 2024-05-17 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 ProShares UltraShort 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.
ProShares UltraShort's stock options are financial instruments that give investors the right to buy or sell shares of ProShares UltraShort common stock at a specified price for a given time period. Generally speaking, an option to purchase or sell ProShares stock makes it part of the underlying stock when the option's price is tied to the movement of the underlying stock. If ProShares UltraShort's stock price goes up or down, the stock options follow.
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in ProShares UltraShort SP500. Also, note that the market value of any etf could be tightly coupled with the direction of predictive economic indicators such as signals in unemployment. Please note that buying 'in-the-money' options on ProShares UltraShort lessens the impact of time decay, as they carry both intrinsic and time value. So, even if ProShares UltraShort's 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 ProShares UltraShort 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 ProShares Etf moves the wrong way.
ProShares UltraShort In The Money Call Balance
When ProShares UltraShort's strike price is surpassing the current stock price, the option contract against ProShares UltraShort SP500 stock is said to be in the money. When it comes to buying ProShares UltraShort'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 ProShares UltraShort SP500 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.
ProShares Current Options Market Mood
ProShares UltraShort'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 ProShares Etf'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 ProShares UltraShort'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. ProShares UltraShort'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 ProShares UltraShort'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 ProShares contract
Base on the Rule 16, the options market is currently suggesting that ProShares UltraShort SP500 will have an average daily up or down price movement of about 2.77% per day over the life of the 2024-05-17 option contract. With ProShares UltraShort trading at USD 26.8, that is roughly USD 0.74. If you think that the market is fully incorporating ProShares UltraShort's daily price movement you should consider buying ProShares UltraShort SP500 options at the current volatility level of 44.26%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
ProShares |
Purchasing ProShares UltraShort 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" ProShares calls. Remember, the seller must deliver ProShares UltraShort SP500 stock to the call owner when a call is exercised.
ProShares UltraShort Option Chain
When ProShares UltraShort's strike price is surpassing the current stock price, the option contract against ProShares UltraShort SP500 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.
ProShares UltraShort's option chain is a display of a range of information that helps investors for ways to trade options on ProShares. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for ProShares. It also shows strike prices and maturity days for a ProShares UltraShort 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 $13.0 | 0.8788 | 0.0076 | 0 | 2024-05-17 | 12.1 - 14.9 | 0.0 | In |
Call | 2024-05-17 CALL at $14.0 | 0.8648 | 0.0088 | 0 | 2024-05-17 | 11.0 - 14.0 | 0.0 | In |
Call | 2024-05-17 CALL at $15.0 | 0.8795 | 0.0106 | 0 | 2024-05-17 | 11.1 - 13.7 | 0.0 | In |
Call | 2024-05-17 CALL at $16.0 | 0.8504 | 0.0123 | 0 | 2024-05-17 | 9.1 - 11.7 | 0.0 | In |
Call | 2024-05-17 CALL at $17.0 | 0.8724 | 0.0145 | 0 | 2024-05-17 | 9.1 - 10.2 | 0.0 | In |
Call | 2024-05-17 CALL at $18.0 | 0.8944 | 0.0153 | 0 | 2024-05-17 | 8.1 - 9.9 | 0.0 | In |
Call | 2024-05-17 CALL at $19.0 | 0.8735 | 0.019 | 0 | 2024-05-17 | 7.1 - 9.0 | 0.0 | In |
Call | 2024-05-17 CALL at $20.0 | 0.8597 | 0.0229 | 0 | 2024-05-17 | 6.1 - 8.0 | 0.0 | In |
Call | 2024-05-17 CALL at $21.0 | 0.8547 | 0.0274 | 0 | 2024-05-17 | 5.3 - 6.7 | 0.0 | In |
Call | 2024-05-17 CALL at $22.0 | 0.7492 | 0.035 | 0 | 2024-05-17 | 4.0 - 5.5 | 0.0 | In |
Call | 2024-05-17 CALL at $23.0 | 0.7595 | 0.5014 | 2 | 2024-05-17 | 3.5 - 5.0 | 4.85 | In |
Call | 2024-05-17 CALL at $24.0 | 0.7325 | 0.0624 | 41 | 2024-05-17 | 2.4 - 3.8 | 3.9 | In |
Call | 2024-05-17 CALL at $25.0 | 0.7271 | 0.0842 | 222 | 2024-05-17 | 1.65 - 2.3 | 2.0 | In |
Call | 2024-05-17 CALL at $26.0 | 0.5723 | 0.1187 | 500 | 2024-05-17 | 1.1 - 1.45 | 1.23 | In |
Call | 2024-05-17 CALL at $27.0 | 0.3954 | 0.1211 | 886 | 2024-05-17 | 0.65 - 0.75 | 0.75 | Out |
Call | 2024-05-17 CALL at $28.0 | 0.2535 | 0.104 | 488 | 2024-05-17 | 0.4 - 0.45 | 0.42 | Out |
Call | 2024-05-17 CALL at $29.0 | 0.1619 | 0.0777 | 149 | 2024-05-17 | 0.2 - 0.3 | 0.25 | Out |
Call | 2024-05-17 CALL at $30.0 | 0.1075 | 0.056 | 344 | 2024-05-17 | 0.15 - 0.2 | 0.16 | Out |
Call | 2024-05-17 CALL at $31.0 | 0.0837 | 0.0536 | 115 | 2024-05-17 | 0.1 - 0.15 | 0.13 | Out |
Call | 2024-05-17 CALL at $33.0 | 0.0356 | 0.021 | 144 | 2024-05-17 | 0.0 - 0.1 | 0.05 | Out |
Call | 2024-05-17 CALL at $37.0 | 0.0275 | 0.0125 | 18 | 2024-05-17 | 0.0 - 0.5 | 0.05 | Out |
Put | 2024-05-17 PUT at $40.0 | -0.8559 | 0.0183 | 0 | 2024-05-17 | 12.5 - 15.0 | 0.0 | In |
Put | 2024-05-17 PUT at $39.0 | -0.854 | 0.0195 | 0 | 2024-05-17 | 11.1 - 14.0 | 0.0 | In |
Put | 2024-05-17 PUT at $37.0 | -0.8107 | 0.025 | 0 | 2024-05-17 | 9.6 - 12.2 | 0.0 | In |
Put | 2024-05-17 PUT at $36.0 | -0.8463 | 0.0242 | 0 | 2024-05-17 | 8.1 - 11.0 | 0.0 | In |
Put | 2024-05-17 PUT at $29.0 | -0.8913 | 0.0441 | 63 | 2024-05-17 | 1.2 - 3.8 | 2.37 | In |
Put | 2024-05-17 PUT at $25.0 | -0.2953 | 0.6424 | 229 | 2024-05-17 | 0.1 - 0.15 | 0.1 | Out |
Put | 2024-05-17 PUT at $24.0 | -0.1071 | 0.1602 | 60 | 2024-05-17 | 0.0 - 0.1 | 0.06 | Out |
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Already Invested in ProShares UltraShort SP500?
The danger of trading ProShares UltraShort SP500 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 ProShares UltraShort 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 ProShares UltraShort. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile ProShares UltraShort 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 ProShares UltraShort is a strong investment it is important to analyze ProShares UltraShort'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 ProShares UltraShort's future performance. For an informed investment choice regarding ProShares Etf, refer to the following important reports: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in ProShares UltraShort SP500. Also, note that the market value of any etf could be tightly coupled with the direction of predictive economic indicators such as signals in unemployment. Note that the ProShares UltraShort information on this page should be used as a complementary analysis to other ProShares UltraShort'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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
The market value of ProShares UltraShort is measured differently than its book value, which is the value of ProShares that is recorded on the company's balance sheet. Investors also form their own opinion of ProShares UltraShort's value that differs from its market value or its book value, called intrinsic value, which is ProShares UltraShort'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 ProShares UltraShort's market value can be influenced by many factors that don't directly affect ProShares UltraShort'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 ProShares UltraShort's value and its price as these two are different measures arrived at by different means. Investors typically determine if ProShares UltraShort is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ProShares UltraShort'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.