BLDR241220P00200000 Option on Builders FirstSource
| BLDR Stock | USD 172.92 2.18 1.28% |
Builders FirstSource's latest option contracts expiring on 2024-12-20 are carrying combined implied volatility of 0.62 with a put-to-call open interest ratio of 0.72 over 36 outstanding agreements suggesting investors are buying slightly more calls than puts on contracts expiring on 2024-12-20. The total put volume is at 170, with calls trading at the volume of 170. This yields a 0.55 put-to-call volume ratio.
Open Interest Against 2024-12-20 Option Contracts
2024-12-20
The chart above shows Builders FirstSource'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. Builders FirstSource's open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Builders FirstSource's option, there is no secondary market available for investors to trade.
Builders FirstSource Maximum Pain Price across 2024-12-20 Option Contracts
Max pain occurs when Builders FirstSource's market makers reach a net positive position across all Builders FirstSource's options at a strike price where option holders stand to lose the most money. By contrast, Builders FirstSource'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 Builders FirstSource
Analyzing Builders FirstSource's in-the-money options over time can help investors to take a profitable long position in Builders FirstSource regardless of its overall volatility. This is especially true when Builders FirstSource's options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money Builders FirstSource's options could be used as guardians of the underlying stock as they move almost dollar for dollar with Builders FirstSource'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 Builders FirstSource. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in unemployment.
Builders FirstSource In The Money Call Balance
When Builders FirstSource's strike price is surpassing the current stock price, the option contract against Builders FirstSource stock is said to be in the money. When it comes to buying Builders FirstSource'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 Builders FirstSource 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.
Builders Current Options Market Mood
Builders FirstSource'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 Builders 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 Builders FirstSource's options investors are not very successful. Builders FirstSource'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 Builders contract
Base on the Rule 16, the options market is currently suggesting that Builders FirstSource will have an average daily up or down price movement of about 0.0388% per day over the life of the 2024-12-20 option contract. With Builders FirstSource trading at USD 172.92, that is roughly USD 0.067. If you think that the market is fully incorporating Builders FirstSource's daily price movement you should consider buying Builders FirstSource options at the current volatility level of 0.62%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
Builders |
Purchasing Builders FirstSource 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" Builders calls. Remember, the seller must deliver Builders FirstSource stock to the call owner when a call is exercised.
Builders FirstSource Option Chain
When Builders FirstSource's strike price is surpassing the current stock price, the option contract against Builders FirstSource 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.
Builders FirstSource's option chain is a display of a range of information that helps investors for ways to trade options on Builders. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Builders. It also shows strike prices and maturity days for a Builders FirstSource 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. Builders FirstSource Selling And Marketing Expenses Over Time
Selling And Marketing Expenses |
| Timeline |
Builders Total Stockholder Equity
Total Stockholder Equity |
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Builders FirstSource Corporate Directors
| Craig Steinke | Independent Director | Profile | |
| Brett Milgrim | Independent Director | Profile | |
| Cleveland Christophe | Independent Director | Profile | |
| Daniel Agroskin | Independent Director | Profile |
Additional Tools for Builders Stock Analysis
When running Builders FirstSource's price analysis, check to measure Builders FirstSource's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Builders FirstSource is operating at the current time. Most of Builders FirstSource's value examination focuses on studying past and present price action to predict the probability of Builders FirstSource's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Builders FirstSource's price. Additionally, you may evaluate how the addition of Builders FirstSource to your portfolios can decrease your overall portfolio volatility.