ABG250417C00210000 Option on Asbury Automotive

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 Asbury Automotive 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 Asbury Stock have intrinsic value and are priced higher than out-of-the-money options in the same chain, their volatilities are relatively smaller.

Asbury Automotive's Option Greeks for the contract ending on 2025-04-17 at a strike price of 210.0 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 Asbury Automotive's option greeks, its implied volatility helps estimate the risk of Asbury Automotive stock implied by the prices of the options on Asbury Automotive's stock.

Put options written on Asbury Automotive grant holders of the option the right to sell a specified amount of Asbury Automotive 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 Asbury Stock cannot fall below zero, the put buyer does gain as the price drops. So, purchasing a put option on Asbury Automotive is like buying insurance aginst Asbury Automotive's downside shift.

By selling Asbury Automotive's put option, the investors signal their bearish sentiment. A short position in a put option written on Asbury Automotive will generally make money when the underlying price is above the strike price. Therefore Asbury Automotive's put payoff at expiration depends on where the Asbury Stock price is relative to the put option strike price. The breakeven price of 299.7 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 Asbury Automotive's price. Finally, at the strike price of 210.0, the payoff chart is constant and positive.

Asbury Automotive's option chain is a display of a range of information that helps investors for ways to trade options on Asbury. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Asbury. It also shows strike prices and maturity days for a Asbury Automotive 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.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Asbury Automotive Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

Is Automotive Retail 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 Asbury Automotive. If investors know Asbury 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 Asbury Automotive listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

The market value of Asbury Automotive is measured differently than its book value, which is the value of Asbury that is recorded on the company's balance sheet. Investors also form their own opinion of Asbury Automotive's value that differs from its market value or its book value, called intrinsic value, which is Asbury Automotive'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 Asbury Automotive's market value can be influenced by many factors that don't directly affect Asbury Automotive'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 Asbury Automotive's value and its price as these two are different measures arrived at by different means. Investors typically determine if Asbury Automotive is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Asbury Automotive'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.