AGNC250207P00010500 Option on AGNC Investment Corp

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

AGNC Investment's Option Greeks for the contract ending on 2025-02-07 at a strike price of 10.5 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 AGNC Investment's option greeks, its implied volatility helps estimate the risk of AGNC Investment stock implied by the prices of the options on AGNC Investment's stock.

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

By selling AGNC Investment's put option, the investors signal their bearish sentiment. A short position in a put option written on AGNC Investment will generally make money when the underlying price is above the strike price. Therefore AGNC Investment's put payoff at expiration depends on where the AGNC Stock price is relative to the put option strike price. The breakeven price of 8.84 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 AGNC Investment's price. Finally, at the strike price of 10.5, the payoff chart is constant and positive.

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

Elected by the shareholders, the AGNC Investment's board of directors comprises two types of representatives: AGNC Investment inside directors who are chosen from within the company, and outside directors, selected externally and held independent of AGNC. The board's role is to monitor AGNC Investment's management team and ensure that shareholders' interests are well served. AGNC Investment'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, AGNC Investment's outside directors are responsible for providing unbiased perspectives on the board's policies.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in AGNC Investment Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

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