AGO250417P00090000 Option on Assured Guaranty

An 'Out of The Money' option on Assured has a strike price that Assured Stock has yet to reach, meaning the option has no intrinsic value. 'Out of The Money' options are usually less costly than 'In The Money' options, making them more desirable to traders with smaller amounts of capital. Some of the uses for Assured Guaranty's 'Out of The Money' options include buying the options if you expect a big move in Assured Guaranty's stock. Since 'Out of The Money' options have a lower up-front cost (i.e., no intrinsic value) than 'In The Money' options, buying it is a reasonable choice.

Assured Guaranty's Option Greeks for the contract ending on 2025-04-17 at a strike price of 90.0 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 Assured Guaranty's option greeks, its implied volatility helps estimate the risk of Assured Guaranty stock implied by the prices of the options on Assured Guaranty's stock.

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

By selling Assured Guaranty's put option, the investors signal their bearish sentiment. A short position in a put option written on Assured Guaranty will generally make money when the underlying price is above the strike price. Therefore Assured Guaranty's put payoff at expiration depends on where the Assured Stock price is relative to the put option strike price. The breakeven price of 86.45 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 Assured Guaranty's price. Finally, at the strike price of 90.0, the payoff chart is constant and positive.

Assured Guaranty's option chain is a display of a range of information that helps investors for ways to trade options on Assured. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Assured. It also shows strike prices and maturity days for a Assured Guaranty 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 Assured Guaranty. 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. To learn how to invest in Assured Stock, please use our How to Invest in Assured Guaranty guide.You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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