DKL Option Call 16-05-2025 22 Option on Delek Logistics Partners

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

Buying Delek Logistics' call option is the simplest of option trades. A call option on Delek Stock gives investors the right (but not the obligation) to purchase Delek Logistics at the given strike price. Therefore Delek Logistics' call intrinsic value or payoff at expiration depends on where the Delek Stock price is relative to the call option strike price. The strike price of 22.5 is the critical point that divides the payoff function into two parts. Below the strike, the payoff chart is constant and negative (the trade is a loss). Above the strike, the payoff line is upward sloping as the option payoff rises in proportion with Delek Logistics' price. Finally, at the break-even point of 22.5, the line crosses zero, and trading Delek becomes profitable.

By selling Delek Logistics' call option, the investors signals his or her bearish sentiment. A short position in a call option written on Delek Logistics will generally make money when the underlying price goes down. Therefore Delek Logistics' call intrinsic value or payoff at expiration depends on where the Delek Stock price is relative to the call option strike price. The strike price of 22.5 is the critical point that divides the payoff function into two parts. Below the strike, the payoff chart is constant and positive (the seller makes a profit). Above the strike, the payoff line is downward sloping as the option payoff drops in proportion to Delek Logistics' price. Finally, at the break-even point of 22.5, the line crosses zero, and trading Delek becomes disadvantageous with no downside limits.

Delek Logistics' option chain is a display of a range of information that helps investors for ways to trade options on Delek. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Delek. It also shows strike prices and maturity days for a Delek Logistics 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 Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Delek Logistics Partners. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in industry. You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.

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