AGM241220P00175000 Option on Federal Agricultural
| AGM Stock | USD 212.12 1.06 0.50% |
Federal Agricultural's latest option contracts expiring on 2024-12-20 are carrying combined implied volatility of 0.63 with a put-to-call open interest ratio of 18.25 over 13 outstanding agreements suggesting investors are buying way more puts than calls on contracts expiring on 2024-12-20. The total put volume is at 207, with calls trading at the volume of 207. This yields a 13.8 put-to-call volume ratio.
Open Interest Against 2024-12-20 Option Contracts
2024-12-20
The chart above shows Federal Agricultural'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. Federal Agricultural's open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Federal Agricultural's option, there is no secondary market available for investors to trade.
In The Money vs. Out of Money Option Contracts on Federal Agricultural
Analyzing Federal Agricultural's in-the-money options over time can help investors to take a profitable long position in Federal Agricultural regardless of its overall volatility. This is especially true when Federal Agricultural's options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money Federal Agricultural's options could be used as guardians of the underlying stock as they move almost dollar for dollar with Federal Agricultural's stock while costing only a fraction of its price.
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Federal Agricultural Mortgage. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price.
Please note that buying 'in-the-money' options on Federal Agricultural lessens the impact of time decay, as they carry both intrinsic and time value. So, even if Federal Agricultural'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 Federal Agricultural 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 Federal Stock moves the wrong way.
Federal Agricultural In The Money Call Balance
When Federal Agricultural's strike price is surpassing the current stock price, the option contract against Federal Agricultural Mortgage stock is said to be in the money. When it comes to buying Federal Agricultural'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 Federal Agricultural Mortgage 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.
Federal Current Options Market Mood
Federal Agricultural'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 Federal 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
Unfortunately, most Federal Agricultural's options investors are not very successful. Federal Agricultural'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.
Rule 16 of the current Federal contract
Base on the Rule 16, the options market is currently suggesting that Federal Agricultural Mortgage will have an average daily up or down price movement of about 0.0394% per day over the life of the 2024-12-20 option contract. With Federal Agricultural trading at USD 212.12, that is roughly USD 0.0835. If you think that the market is fully incorporating Federal Agricultural's daily price movement you should consider buying Federal Agricultural Mortgage options at the current volatility level of 0.63%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
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Purchasing Federal Agricultural 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" Federal calls. Remember, the seller must deliver Federal Agricultural Mortgage stock to the call owner when a call is exercised.
Federal Agricultural Option Chain
When Federal Agricultural's strike price is surpassing the current stock price, the option contract against Federal Agricultural Mortgage 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.
Federal Agricultural's option chain is a display of a range of information that helps investors for ways to trade options on Federal. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Federal. It also shows strike prices and maturity days for a Federal Agricultural 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. | Open Int | Expiration | Current Spread | Last Price | |||
Call | AGM Option Call 20-12-2024 180 | 1 | 2024-12-20 | 30.8 - 34.5 | 27.75 | In |
Call | AGM Option Call 20-12-2024 190 | 11 | 2024-12-20 | 21.4 - 25.0 | 23.37 | In |
Call | AGM Option Call 20-12-2024 200 | 0 | 2024-12-20 | 0.0 - 0.0 | 6.83 | In |
Call | AGM Option Call 20-12-2024 210 | 0 | 2024-12-20 | 0.0 - 0.0 | 3.04 | In |
Call | AGM Option Call 20-12-2024 220 | 0 | 2024-12-20 | 0.0 - 0.0 | 2.6 | |
Put | AGM Option Put 20-12-2024 260 | 1 | 2024-12-20 | 47.0 - 50.5 | 48.3 | In |
Put | AGM Option Put 20-12-2024 220 | 1 | 2024-12-20 | 8.2 - 11.5 | 14.0 | In |
Put | AGM Option Put 20-12-2024 210 | 0 | 2024-12-20 | 0.0 - 0.0 | 4.25 | |
Put | AGM Option Put 20-12-2024 180 | 0 | 2024-12-20 | 0.0 - 0.0 | 0.75 | |
Put | AGM Option Put 20-12-2024 175 | 210 | 2024-12-20 | 0.0 - 2.8 | 3.7 | Out |
Put | AGM Option Put 20-12-2024 170 | 1 | 2024-12-20 | 0.0 - 4.8 | 3.6 | Out |
Put | AGM Option Put 20-12-2024 150 | 1 | 2024-12-20 | 0.0 - 1.9 | 1.4 | Out |
Put | AGM Option Put 20-12-2024 140 | 5 | 2024-12-20 | 0.0 - 4.8 | 0.6 | Out |
Federal Agricultural Market Cap Over Time
Market Cap |
| Timeline |
Federal Total Stockholder Equity
Total Stockholder Equity |
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Federal Agricultural Corporate Directors
| Eric McKissack | Independent Director | Profile | |
| Daniel Shaw | Independent Director | Profile | |
| LaJuana Wilcher | Independent Director | Profile | |
| Bruce Sherrick | Independent Director | Profile |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Federal Agricultural Mortgage. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price. You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Is Commercial & Residential Mortgage Finance 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 Federal Agricultural. If investors know Federal 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 Federal Agricultural 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 (0.18) | Dividend Share 5.3 | Earnings Share 15.55 | Revenue Per Share 32.007 | Quarterly Revenue Growth (0.11) |
The market value of Federal Agricultural is measured differently than its book value, which is the value of Federal that is recorded on the company's balance sheet. Investors also form their own opinion of Federal Agricultural's value that differs from its market value or its book value, called intrinsic value, which is Federal Agricultural'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 Federal Agricultural's market value can be influenced by many factors that don't directly affect Federal Agricultural'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 Federal Agricultural's value and its price as these two are different measures arrived at by different means. Investors typically determine if Federal Agricultural is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Federal Agricultural'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.