PUMP Option Call 17-01-2025 5 Option on ProPetro Holding Corp

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

Buying ProPetro Holding's call option is the simplest of option trades. A call option on ProPetro Stock gives investors the right (but not the obligation) to purchase ProPetro Holding at the given strike price. Therefore ProPetro Holding's call intrinsic value or payoff at expiration depends on where the ProPetro Stock price is relative to the call option strike price. The strike price of 5.0 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 ProPetro Holding's price. Finally, at the break-even point of 5.0, the line crosses zero, and trading ProPetro becomes profitable.

By selling ProPetro Holding's call option, the investors signals his or her bearish sentiment. A short position in a call option written on ProPetro Holding will generally make money when the underlying price goes down. Therefore ProPetro Holding's call intrinsic value or payoff at expiration depends on where the ProPetro Stock price is relative to the call option strike price. The strike price of 5.0 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 ProPetro Holding's price. Finally, at the break-even point of 5.0, the line crosses zero, and trading ProPetro becomes disadvantageous with no downside limits.

ProPetro Holding's option chain is a display of a range of information that helps investors for ways to trade options on ProPetro. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for ProPetro. It also shows strike prices and maturity days for a ProPetro Holding 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.

When running ProPetro Holding's price analysis, check to measure ProPetro Holding's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy ProPetro Holding is operating at the current time. Most of ProPetro Holding's value examination focuses on studying past and present price action to predict the probability of ProPetro Holding's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move ProPetro Holding's price. Additionally, you may evaluate how the addition of ProPetro Holding to your portfolios can decrease your overall portfolio volatility.