ALG241220P00195000 Option on Alamo Group
| ALG Stock | USD 195.74 0.19 0.1% |
Alamo's latest option contracts expiring on 2024-12-20 are carrying combined implied volatility of 0.96 with a put-to-call open interest ratio of 1.91 over 25 outstanding agreements suggesting investors are buying way more puts than calls on contracts expiring on 2024-12-20. The total put volume is at 185, with calls trading at the volume of 185. This yields a 3.63 put-to-call volume ratio.
Open Interest Against 2024-12-20 Option Contracts
2024-12-20
The chart above shows Alamo'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. Alamo's open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Alamo's option, there is no secondary market available for investors to trade.
Alamo Maximum Pain Price across 2024-12-20 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 Alamo close to expiration to expire worthless. 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, Alamo's option sellers may reap the most after selling more options than buying, causing them to expire worthless.
In The Money vs. Out of Money Option Contracts on Alamo
Analyzing Alamo's in-the-money options over time can help investors to take a profitable long position in Alamo regardless of its overall volatility. This is especially true when Alamo's options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money Alamo's options could be used as guardians of the underlying stock as they move almost dollar for dollar with Alamo'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 Alamo 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 economic analysis.
Alamo Group In The Money Call Balance
When Alamo's strike price is surpassing the current stock price, the option contract against Alamo Group stock is said to be in the money. When it comes to buying Alamo'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 Alamo Group 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.
Alamo Current Options Market Mood
Alamo'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 Alamo 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 Alamo's options investors are not very successful. Alamo'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 Alamo contract
Base on the Rule 16, the options market is currently suggesting that Alamo Group will have an average daily up or down price movement of about 0.06% per day over the life of the 2024-12-20 option contract. With Alamo trading at USD 195.74, that is roughly USD 0.12. If you think that the market is fully incorporating Alamo's daily price movement you should consider buying Alamo Group options at the current volatility level of 0.96%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
Alamo |
Purchasing Alamo 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" Alamo calls. Remember, the seller must deliver Alamo Group stock to the call owner when a call is exercised.
Alamo Option Chain
When Alamo's strike price is surpassing the current stock price, the option contract against Alamo Group 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.
Alamo's option chain is a display of a range of information that helps investors for ways to trade options on Alamo. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Alamo. It also shows strike prices and maturity days for a Alamo 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 | ALG Option Call 20-12-2024 130 | 1 | 2024-12-20 | 37.5 - 42.0 | 63.2 | In |
Call | ALG Option Call 20-12-2024 175 | 1 | 2024-12-20 | 17.0 - 21.9 | 10.05 | In |
Call | ALG Option Call 20-12-2024 180 | 11 | 2024-12-20 | 12.5 - 17.3 | 7.45 | In |
Call | ALG Option Call 20-12-2024 185 | 0 | 2024-12-20 | 8.1 - 13.0 | 6.48 | In |
Call | ALG Option Call 20-12-2024 195 | 24 | 2024-12-20 | 1.5 - 5.0 | 7.9 | In |
Call | ALG Option Call 20-12-2024 200 | 37 | 2024-12-20 | 0.6 - 2.0 | 3.7 | Out |
Call | ALG Option Call 20-12-2024 210 | 6 | 2024-12-20 | 0.05 - 0.75 | 1.4 | Out |
Call | ALG Option Call 20-12-2024 220 | 1 | 2024-12-20 | 0.25 - 1.9 | 1.8 | Out |
Call | ALG Option Call 20-12-2024 230 | 11 | 2024-12-20 | 0.05 - 5.0 | 1.1 | Out |
Put | ALG Option Put 20-12-2024 135 | 1 | 2024-12-20 | 0.0 - 4.8 | 1.55 | Out |
Put | ALG Option Put 20-12-2024 140 | 1 | 2024-12-20 | 0.1 - 5.0 | 1.05 | Out |
Put | ALG Option Put 20-12-2024 145 | 1 | 2024-12-20 | 0.85 - 3.1 | 1.5 | Out |
Put | ALG Option Put 20-12-2024 150 | 8 | 2024-12-20 | 1.35 - 3.8 | 1.95 | Out |
Put | ALG Option Put 20-12-2024 155 | 104 | 2024-12-20 | 1.2 - 3.4 | 3.8 | Out |
Put | ALG Option Put 20-12-2024 160 | 11 | 2024-12-20 | 0.5 - 5.4 | 2.49 | Out |
Put | ALG Option Put 20-12-2024 165 | 21 | 2024-12-20 | 0.0 - 3.6 | 0.8 | Out |
Put | ALG Option Put 20-12-2024 170 | 1 | 2024-12-20 | 0.0 - 0.0 | 3.41 | Out |
Put | ALG Option Put 20-12-2024 175 | 3 | 2024-12-20 | 0.0 - 2.05 | 2.2 | Out |
Put | ALG Option Put 20-12-2024 180 | 0 | 2024-12-20 | 0.0 - 4.8 | 6.62 | |
Put | ALG Option Put 20-12-2024 185 | 1 | 2024-12-20 | 12.0 - 16.9 | 13.41 | Out |
Put | ALG Option Put 20-12-2024 190 | 1 | 2024-12-20 | 0.0 - 4.7 | 3.1 | Out |
Put | ALG Option Put 20-12-2024 195 | 22 | 2024-12-20 | 1.5 - 3.5 | 1.9 | Out |
Put | ALG Option Put 20-12-2024 200 | 1 | 2024-12-20 | 0.0 - 0.0 | 24.6 | In |
Put | ALG Option Put 20-12-2024 260 | 0 | 2024-12-20 | 74.1 - 79.0 | 85.5 | In |
Put | ALG Option Put 20-12-2024 320 | 0 | 2024-12-20 | 143.0 - 147.5 | 142.22 | In |
Alamo Selling And Marketing Expenses Over Time
Selling And Marketing Expenses |
| Timeline |
Alamo Market Cap Over Time
Market Cap |
| Timeline |
Alamo Total Stockholder Equity
Total Stockholder Equity |
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Alamo Corporate Directors
| Richard Parod | Independent Director | Profile | |
| Eric Etchart | Independent Director | Profile | |
| Robert Bauer | Independent Director | Profile | |
| Tracy Jokinen | Independent Director | Profile |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Alamo 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 economic analysis. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Is Construction Machinery & Heavy Transportation Equipment 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 Alamo. If investors know Alamo 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 Alamo 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 (0.22) | Dividend Share 1 | Earnings Share 9.93 | Revenue Per Share 138.895 | Quarterly Revenue Growth (0.04) |
The market value of Alamo Group is measured differently than its book value, which is the value of Alamo that is recorded on the company's balance sheet. Investors also form their own opinion of Alamo's value that differs from its market value or its book value, called intrinsic value, which is Alamo'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 Alamo's market value can be influenced by many factors that don't directly affect Alamo'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 Alamo's value and its price as these two are different measures arrived at by different means. Investors typically determine if Alamo is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alamo'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.