SB Option Call 17-04-2025 2 Option on Safe Bulkers

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

Buying Safe Bulkers' call option is the simplest of option trades. A call option on Safe Stock gives investors the right (but not the obligation) to purchase Safe Bulkers at the given strike price. Therefore Safe Bulkers' call intrinsic value or payoff at expiration depends on where the Safe Stock price is relative to the call option strike price. The strike price of 2.5 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 Safe Bulkers' price. Finally, at the break-even point of 2.5, the line crosses zero, and trading Safe becomes profitable.

By selling Safe Bulkers' call option, the investors signals his or her bearish sentiment. A short position in a call option written on Safe Bulkers will generally make money when the underlying price goes down. Therefore Safe Bulkers' call intrinsic value or payoff at expiration depends on where the Safe Stock price is relative to the call option strike price. The strike price of 2.5 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 Safe Bulkers' price. Finally, at the break-even point of 2.5, the line crosses zero, and trading Safe becomes disadvantageous with no downside limits.

Safe Bulkers' option chain is a display of a range of information that helps investors for ways to trade options on Safe. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Safe. It also shows strike prices and maturity days for a Safe Bulkers 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 World Market Map to better understand how to build diversified portfolios, which includes a position in Safe Bulkers. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics. For information on how to trade Safe Stock refer to our How to Trade Safe Stock guide.You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

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