KLAC250321C00900000 Option on KLA Tencor

An 'Out of The Money' option on KLA has a strike price that KLA Stock has yet to reach, meaning the option has no intrinsic value. 'Out of The Money' options are usually less costly than 'In The Money' options, making them more desirable to traders with smaller amounts of capital. Some of the uses for KLA Tencor's 'Out of The Money' options include buying the options if you expect a big move in KLA Tencor's stock. Since 'Out of The Money' options have a lower up-front cost (i.e., no intrinsic value) than 'In The Money' options, buying it is a reasonable choice.

KLA Tencor's Option Greeks for the contract ending on 2025-03-21 at a strike price of 900.0 measures the various factors that affect its cost and calculated using a theoretical options pricing model. It helps investors make more informed decisions about whether to trade this option contract or when to trade it. In addition to KLA Tencor's option greeks, its implied volatility helps estimate the risk of KLA Tencor stock implied by the prices of the options on KLA Tencor's stock.

Put options written on KLA Tencor grant holders of the option the right to sell a specified amount of KLA Tencor at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of KLA Stock cannot fall below zero, the put buyer does gain as the price drops. So, purchasing a put option on KLA Tencor is like buying insurance aginst KLA Tencor's downside shift.

By selling KLA Tencor's put option, the investors signal their bearish sentiment. A short position in a put option written on KLA Tencor will generally make money when the underlying price is above the strike price. Therefore KLA Tencor's put payoff at expiration depends on where the KLA Stock price is relative to the put option strike price. The breakeven price of 902.65 is the critical point that divides the payoff function into two parts. Below the breakeven price, the payoff is dropping and negative (the seller makes a loss). Above the breakeven price, the payoff line is upward sloping as the option payoff increases in proportion to KLA Tencor's price. Finally, at the strike price of 900.0, the payoff chart is constant and positive.

KLA Tencor's option chain is a display of a range of information that helps investors for ways to trade options on KLA. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for KLA. It also shows strike prices and maturity days for a KLA Tencor 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 Correlation Analysis to better understand how to build diversified portfolios, which includes a position in KLA Tencor. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. For information on how to trade KLA Stock refer to our How to Trade KLA Stock guide.You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.

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