LAD241220P00390000 Option on Lithia Motors

LAD Stock  USD 383.67  7.15  1.90%   
Lithia Motors' latest option contracts expiring on 2024-12-20 are carrying combined implied volatility of 1.0 with a put-to-call open interest ratio of 0.46 over 61 outstanding agreements suggesting investors are buying more calls than puts on contracts expiring on 2024-12-20. The total put volume is at 109, with calls trading at the volume of 109. This yields a 0.36 put-to-call volume ratio.

Open Interest Against 2024-12-20 Option Contracts

The chart above shows Lithia Motors' 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. Lithia Motors' open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Lithia Motors' option, there is no secondary market available for investors to trade.

In The Money vs. Out of Money Option Contracts on Lithia Motors

Analyzing Lithia Motors' in-the-money options over time can help investors to take a profitable long position in Lithia Motors regardless of its overall volatility. This is especially true when Lithia Motors' options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money Lithia Motors' options could be used as guardians of the underlying stock as they move almost dollar for dollar with Lithia Motors' stock while costing only a fraction of its price.
Lithia Motors' stock options are financial instruments that give investors the right to buy or sell shares of Lithia Motors common stock at a specified price for a given time period. Generally speaking, an option to purchase or sell Lithia stock makes it part of the underlying stock when the option's price is tied to the movement of the underlying stock. If Lithia Motors' stock price goes up or down, the stock options follow.
At present, Lithia Motors' Liabilities And Stockholders Equity is projected to increase significantly based on the last few years of reporting. The current year's Common Stock Total Equity is expected to grow to about 1.3 B, whereas Other Stockholder Equity is forecasted to decline to about 45.5 M.

Lithia Motors In The Money Call Balance

When Lithia Motors' strike price is surpassing the current stock price, the option contract against Lithia Motors stock is said to be in the money. When it comes to buying Lithia Motors' 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 Lithia Motors 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.

Lithia Current Options Market Mood

Lithia Motors' 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 Lithia 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 Lithia Motors' options investors are not very successful. Lithia Motors' 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 Lithia contract

Base on the Rule 16, the options market is currently suggesting that Lithia Motors will have an average daily up or down price movement of about 0.0625% per day over the life of the 2024-12-20 option contract. With Lithia Motors trading at USD 383.67, that is roughly USD 0.24. If you think that the market is fully incorporating Lithia Motors' daily price movement you should consider buying Lithia Motors options at the current volatility level of 1.0%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
  
Purchasing Lithia Motors 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" Lithia calls. Remember, the seller must deliver Lithia Motors stock to the call owner when a call is exercised.

Lithia Motors Option Chain

When Lithia Motors' strike price is surpassing the current stock price, the option contract against Lithia Motors 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.
Lithia Motors' option chain is a display of a range of information that helps investors for ways to trade options on Lithia. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Lithia. It also shows strike prices and maturity days for a Lithia Motors 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 IntExpirationCurrent SpreadLast Price
Call
LAD Option Call 20-12-2024 13512024-12-20126.5 - 131.2132.3In
Call
LAD Option Call 20-12-2024 14512024-12-20155.1 - 160.0156.4In
Call
LAD Option Call 20-12-2024 16512024-12-20132.5 - 137.497.0In
Call
LAD Option Call 20-12-2024 19002024-12-20199.0 - 203.9126.04In
Call
LAD Option Call 20-12-2024 23012024-12-2074.2 - 79.077.5In
Call
LAD Option Call 20-12-2024 2504632024-12-200.0 - 0.0138.0In
Call
LAD Option Call 20-12-2024 26062024-12-200.0 - 0.0108.43In
Call
LAD Option Call 20-12-2024 270202024-12-20119.5 - 124.360.6In
Call
LAD Option Call 20-12-2024 280612024-12-2050.3 - 55.032.4In
Call
LAD Option Call 20-12-2024 290362024-12-2095.1 - 99.949.6In
Call
LAD Option Call 20-12-2024 30052024-12-2090.0 - 94.841.3In
Call
LAD Option Call 20-12-2024 310102024-12-2080.3 - 85.030.11In
Call
LAD Option Call 20-12-2024 320192024-12-2053.3 - 57.419.05In
Call
LAD Option Call 20-12-2024 330942024-12-200.0 - 0.061.0In
Call
LAD Option Call 20-12-2024 340232024-12-200.0 - 0.035.0In
Call
LAD Option Call 20-12-2024 350762024-12-200.0 - 0.037.5In
Call
LAD Option Call 20-12-2024 3601752024-12-200.0 - 0.029.3In
Call
LAD Option Call 20-12-2024 370562024-12-200.0 - 0.012.34In
Call
LAD Option Call 20-12-2024 3801812024-12-200.0 - 0.09.05In
Call
LAD Option Call 20-12-2024 3902242024-12-200.0 - 0.04.77Out
Call
LAD Option Call 20-12-2024 400182024-12-200.0 - 0.03.7Out
Call
LAD Option Call 20-12-2024 41062024-12-200.0 - 0.05.3Out
Call
LAD Option Call 20-12-2024 420582024-12-200.0 - 0.01.7Out
Call
LAD Option Call 20-12-2024 430152024-12-200.0 - 0.02.3Out
Call
LAD Option Call 20-12-2024 44022024-12-200.0 - 0.02.5Out
Call
LAD Option Call 20-12-2024 45022024-12-200.0 - 0.01.5Out
Call
LAD Option Call 20-12-2024 47012024-12-200.0 - 0.01.65Out
 Put
LAD Option Put 20-12-2024 13012024-12-200.0 - 2.20.57Out
 Put
LAD Option Put 20-12-2024 145502024-12-200.0 - 2.552.8Out
 Put
LAD Option Put 20-12-2024 15032024-12-200.0 - 2.03.5Out
 Put
LAD Option Put 20-12-2024 160802024-12-203.3 - 4.04.0Out
 Put
LAD Option Put 20-12-2024 16512024-12-202.05 - 2.43.8Out
 Put
LAD Option Put 20-12-2024 17012024-12-200.2 - 3.12.0Out
 Put
LAD Option Put 20-12-2024 17552024-12-200.0 - 0.00.05Out
 Put
LAD Option Put 20-12-2024 18042024-12-200.0 - 0.21.3Out
 Put
LAD Option Put 20-12-2024 18512024-12-200.0 - 3.02.63Out
 Put
LAD Option Put 20-12-2024 19052024-12-203.8 - 6.64.8Out
 Put
LAD Option Put 20-12-2024 19522024-12-200.85 - 4.11.9Out
 Put
LAD Option Put 20-12-2024 200432024-12-202.0 - 5.42.87Out
 Put
LAD Option Put 20-12-2024 21042024-12-202.2 - 5.53.99Out
 Put
LAD Option Put 20-12-2024 22002024-12-200.0 - 2.352.2Out
 Put
LAD Option Put 20-12-2024 23082024-12-200.0 - 0.00.05Out
 Put
LAD Option Put 20-12-2024 24062024-12-200.0 - 3.32.8Out
 Put
LAD Option Put 20-12-2024 250292024-12-200.0 - 2.50.69Out
 Put
LAD Option Put 20-12-2024 260112024-12-200.0 - 3.32.75Out
 Put
LAD Option Put 20-12-2024 270292024-12-200.0 - 0.00.94Out
 Put
LAD Option Put 20-12-2024 2801512024-12-200.0 - 0.01.04Out
 Put
LAD Option Put 20-12-2024 290132024-12-200.0 - 0.00.11Out
 Put
LAD Option Put 20-12-2024 300272024-12-200.0 - 0.00.85Out
 Put
LAD Option Put 20-12-2024 310362024-12-200.0 - 0.02.14Out
 Put
LAD Option Put 20-12-2024 320102024-12-200.0 - 2.06.79Out
 Put
LAD Option Put 20-12-2024 330802024-12-200.0 - 0.01.1Out
 Put
LAD Option Put 20-12-2024 340342024-12-200.0 - 0.05.16Out
 Put
LAD Option Put 20-12-2024 350152024-12-200.0 - 0.01.25Out
 Put
LAD Option Put 20-12-2024 36042024-12-200.0 - 0.03.0Out
 Put
LAD Option Put 20-12-2024 370272024-12-200.0 - 0.05.8Out
 Put
LAD Option Put 20-12-2024 380112024-12-200.0 - 0.08.2Out
 Put
LAD Option Put 20-12-2024 39012024-12-200.0 - 0.011.5In
 Put
LAD Option Put 20-12-2024 400302024-12-200.0 - 0.014.2In
 Put
LAD Option Put 20-12-2024 43002024-12-2089.7 - 94.5126.5In
 Put
LAD Option Put 20-12-2024 47002024-12-20129.7 - 134.5166.5In

Lithia Motors Selling And Marketing Expenses Over Time

   Selling And Marketing Expenses   
       Timeline  

Lithia Total Stockholder Equity

Total Stockholder Equity

6.52 Billion

At present, Lithia Motors' Total Stockholder Equity is projected to increase significantly based on the last few years of reporting.

Lithia Motors Corporate Directors

Shauna McIntyreIndependent DirectorProfile
David RobinoIndependent DirectorProfile
Kenneth RobertsIndependent DirectorProfile
Louis MiramontesLead Independent DirectorProfile
When determining whether Lithia Motors is a strong investment it is important to analyze Lithia Motors' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Lithia Motors' future performance. For an informed investment choice regarding Lithia Stock, refer to the following important reports:
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Lithia Motors. 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 Lithia Stock refer to our How to Trade Lithia Stock guide.
You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Is Automotive Retail 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 Lithia Motors. If investors know Lithia 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 Lithia Motors 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
(0.17)
Dividend Share
2.09
Earnings Share
29.29
Revenue Per Share
1.3 K
Quarterly Revenue Growth
0.114
The market value of Lithia Motors is measured differently than its book value, which is the value of Lithia that is recorded on the company's balance sheet. Investors also form their own opinion of Lithia Motors' value that differs from its market value or its book value, called intrinsic value, which is Lithia Motors' 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 Lithia Motors' market value can be influenced by many factors that don't directly affect Lithia Motors' 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 Lithia Motors' value and its price as these two are different measures arrived at by different means. Investors typically determine if Lithia Motors is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lithia Motors' 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.