Ecopetrol Stock Options
| EC Stock | USD 8.36 0.15 1.83% |
Ecopetrol's latest option contracts expiring on 2024-12-20 are carrying combined implied volatility of 2.01 with a put-to-call open interest ratio of 0.31 over 8 outstanding agreements suggesting investors are buying way more calls than puts on contracts expiring on 2024-12-20. The total put volume is at 4.0, with calls trading at the volume of 4.0. This yields a 0.44 put-to-call volume ratio.
Open Interest Against 2024-12-20 Option Contracts
2024-12-20
The chart above shows Ecopetrol'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. Ecopetrol's open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Ecopetrol's option, there is no secondary market available for investors to trade.
In The Money vs. Out of Money Option Contracts on Ecopetrol
Analyzing Ecopetrol's in-the-money options over time can help investors to take a profitable long position in Ecopetrol regardless of its overall volatility. This is especially true when Ecopetrol's options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money Ecopetrol's options could be used as guardians of the underlying stock as they move almost dollar for dollar with Ecopetrol's stock while costing only a fraction of its price.
Ecopetrol's stock options are financial instruments that give investors the right to buy or sell shares of Ecopetrol SA ADR common stock at a specified price for a given time period. Generally speaking, an option to purchase or sell Ecopetrol stock makes it part of the underlying stock when the option's price is tied to the movement of the underlying stock. If Ecopetrol's stock price goes up or down, the stock options follow.
The current year's Liabilities And Stockholders Equity is expected to grow to about 296.4 T, whereas Common Stock Shares Outstanding is forecasted to decline to about 2.1 B. Ecopetrol SA ADR In The Money Call Balance
When Ecopetrol's strike price is surpassing the current stock price, the option contract against Ecopetrol SA ADR stock is said to be in the money. When it comes to buying Ecopetrol'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 Ecopetrol SA ADR 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.
Ecopetrol Current Options Market Mood
Ecopetrol'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 Ecopetrol 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
Most options investors, including buyers and sellers of Ecopetrol's calls and puts, are not very successful. It is estimated that an average options trader loses somewhere between 80% to 90% of the time. Ecopetrol'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 Ecopetrol contract
Base on the Rule 16, the options market is currently suggesting that Ecopetrol SA ADR will have an average daily up or down price movement of about 0.13% per day over the life of the 2024-12-20 option contract. With Ecopetrol trading at USD 8.36, that is roughly USD 0.0105. If you think that the market is fully incorporating Ecopetrol's daily price movement you should consider buying Ecopetrol SA ADR options at the current volatility level of 2.01%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
Ecopetrol |
Purchasing Ecopetrol 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" Ecopetrol calls. Remember, the seller must deliver Ecopetrol SA ADR stock to the call owner when a call is exercised.
Ecopetrol Option Chain
When Ecopetrol's strike price is surpassing the current stock price, the option contract against Ecopetrol SA ADR 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.
Ecopetrol's option chain is a display of a range of information that helps investors for ways to trade options on Ecopetrol. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Ecopetrol. It also shows strike prices and maturity days for a Ecopetrol 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 | EC Option Call 20-12-2024 2 | 20 | 2024-12-20 | 5.7 - 6.0 | 5.6 | In |
Call | EC Option Call 20-12-2024 5 | 7 | 2024-12-20 | 3.2 - 3.5 | 2.95 | In |
Call | EC Option Call 20-12-2024 7 | 2042 | 2024-12-20 | 0.8 - 0.95 | 0.9 | In |
Call | EC Option Call 20-12-2024 10 | 8134 | 2024-12-20 | 0.0 - 0.05 | 0.04 | Out |
Put | EC Option Put 20-12-2024 5 | 3 | 2024-12-20 | 0.0 - 0.05 | 0.01 | Out |
Put | EC Option Put 20-12-2024 7 | 3071 | 2024-12-20 | 0.0 - 0.05 | 0.06 | Out |
Put | EC Option Put 20-12-2024 10 | 121 | 2024-12-20 | 1.45 - 1.95 | 2.15 | In |
Put | EC Option Put 20-12-2024 12 | 0 | 2024-12-20 | 3.8 - 6.4 | 4.32 | In |
Ecopetrol Selling And Marketing Expenses Over Time
Selling And Marketing Expenses |
| Timeline |
Ecopetrol Market Cap Over Time
Market Cap |
| Timeline |
Ecopetrol Total Stockholder Equity
Total Stockholder Equity |
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Ecopetrol Corporate Directors
| Carlos Sanz | Independent Director | Profile | |
| Hernando Plazas | Independent Director | Profile | |
| Santiago Maldonado | Independent Director | Profile | |
| Maria Escobar | Director - Corporate Finance and Investor Relations | Profile |
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Ecopetrol SA ADR. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Is Oil, Gas & Consumable Fuels 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 Ecopetrol. If investors know Ecopetrol 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 Ecopetrol 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 (0.28) | Earnings Share 1.9 | Revenue Per Share 32.4 K | Quarterly Revenue Growth (0.01) | Return On Assets 0.079 |
The market value of Ecopetrol SA ADR is measured differently than its book value, which is the value of Ecopetrol that is recorded on the company's balance sheet. Investors also form their own opinion of Ecopetrol's value that differs from its market value or its book value, called intrinsic value, which is Ecopetrol'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 Ecopetrol's market value can be influenced by many factors that don't directly affect Ecopetrol'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 Ecopetrol's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ecopetrol is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ecopetrol'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.