FARO Technologies Stock Options
| FARO Stock | USD 27.36 0.16 0.59% |
FARO Technologies' latest option contracts expiring on 2024-12-20 are carrying combined implied volatility of 1.49 with a put-to-call open interest ratio of 4.82 over 12 outstanding agreements suggesting investors are buying way more puts than calls on contracts expiring on 2024-12-20. The total put volume is at 11.0, with calls trading at the volume of 11.0. This yields a 0.5 put-to-call volume ratio.
Open Interest Against 2024-12-20 Option Contracts
2024-12-20
The chart above shows FARO Technologies' 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. FARO Technologies' open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for FARO Technologies' option, there is no secondary market available for investors to trade.
In The Money vs. Out of Money Option Contracts on FARO Technologies
Analyzing FARO Technologies' in-the-money options over time can help investors to take a profitable long position in FARO Technologies regardless of its overall volatility. This is especially true when FARO Technologies' options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money FARO Technologies' options could be used as guardians of the underlying stock as they move almost dollar for dollar with FARO Technologies' stock while costing only a fraction of its price.
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in FARO Technologies. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area.
Please note that buying 'in-the-money' options on FARO Technologies lessens the impact of time decay, as they carry both intrinsic and time value. So, even if FARO Technologies' value remains static through the expiration date, the investor can sell to close an 'in-the-money' option to avoid a potential loss. However, in-the-money FARO Technologies contracts are usually more expensive to enter than their out-of-the-money counterparts. So keep in mind that while the payoffs on an in-the-money trade can be high, the investors could ultimately experience a more consequential loss if FARO Stock moves the wrong way.
FARO Technologies In The Money Call Balance
When FARO Technologies' strike price is surpassing the current stock price, the option contract against FARO Technologies stock is said to be in the money. When it comes to buying FARO Technologies' 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 FARO Technologies 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.
FARO Current Options Market Mood
FARO Technologies' 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 FARO 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 FARO Technologies' options investors are not very successful. FARO Technologies' 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 FARO contract
Base on the Rule 16, the options market is currently suggesting that FARO Technologies will have an average daily up or down price movement of about 0.0931% per day over the life of the 2024-12-20 option contract. With FARO Technologies trading at USD 27.36, that is roughly USD 0.0255. If you think that the market is fully incorporating FARO Technologies' daily price movement you should consider buying FARO Technologies options at the current volatility level of 1.49%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
FARO |
Purchasing FARO Technologies 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" FARO calls. Remember, the seller must deliver FARO Technologies stock to the call owner when a call is exercised.
FARO Technologies Option Chain
When FARO Technologies' strike price is surpassing the current stock price, the option contract against FARO Technologies 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.
FARO Technologies' option chain is a display of a range of information that helps investors for ways to trade options on FARO. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for FARO. It also shows strike prices and maturity days for a FARO Technologies 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 | FARO Option Call 20-12-2024 15 | 1 | 2024-12-20 | 0.7 - 2.6 | 3.3 | In |
Call | FARO Option Call 20-12-2024 17 | 0 | 2024-12-20 | 0.0 - 0.0 | 9.3 | In |
Call | FARO Option Call 20-12-2024 20 | 10 | 2024-12-20 | 7.0 - 9.4 | 7.1 | In |
Call | FARO Option Call 20-12-2024 22 | 0 | 2024-12-20 | 0.0 - 0.0 | 5.4 | In |
Call | FARO Option Call 20-12-2024 25 | 0 | 2024-12-20 | 0.0 - 0.0 | 2.5 | In |
Call | FARO Option Call 20-12-2024 30 | 0 | 2024-12-20 | 0.0 - 0.0 | 0.25 | |
Put | FARO Option Put 20-12-2024 5 | 8 | 2024-12-20 | 0.0 - 0.75 | 0.25 | Out |
Put | FARO Option Put 20-12-2024 12 | 37 | 2024-12-20 | 0.0 - 1.15 | 0.4 | Out |
Put | FARO Option Put 20-12-2024 17 | 2 | 2024-12-20 | 0.0 - 0.15 | 0.09 | Out |
Put | FARO Option Put 20-12-2024 20 | 3 | 2024-12-20 | 0.0 - 1.0 | 0.32 | Out |
Put | FARO Option Put 20-12-2024 22 | 3 | 2024-12-20 | 0.0 - 1.25 | 0.44 | Out |
Put | FARO Option Put 20-12-2024 25 | 0 | 2024-12-20 | 0.0 - 0.0 | 1.36 |
FARO Technologies Selling And Marketing Expenses Over Time
Selling And Marketing Expenses |
| Timeline |
FARO Technologies Market Cap Over Time
Market Cap |
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FARO Total Stockholder Equity
Total Stockholder Equity |
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FARO Technologies Corporate Management
| Jason Pollock | Chief Officer | Profile | |
| Arianne Boyer | VP Officer | Profile | |
| Allen Muhich | Executive Officer | Profile | |
| Jeffrey Sexton | Senior Sales | Profile | |
| Michael Carris | VP Officer | Profile |
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in FARO Technologies. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. To learn how to invest in FARO Stock, please use our How to Invest in FARO Technologies guide.You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Is Electronic Equipment, Instruments & Components 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 FARO Technologies. If investors know FARO 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 FARO Technologies listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.33) | Revenue Per Share 18.152 | Quarterly Revenue Growth (0.05) | Return On Assets 0.013 | Return On Equity (0.03) |
The market value of FARO Technologies is measured differently than its book value, which is the value of FARO that is recorded on the company's balance sheet. Investors also form their own opinion of FARO Technologies' value that differs from its market value or its book value, called intrinsic value, which is FARO Technologies' 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 FARO Technologies' market value can be influenced by many factors that don't directly affect FARO Technologies' 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 FARO Technologies' value and its price as these two are different measures arrived at by different means. Investors typically determine if FARO Technologies is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, FARO Technologies' 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.