American Electric Stock Options

AEP Stock  USD 105.16  2.48  2.30%   
American Electric's latest option contracts expiring on May 16th 2025 are carrying combined implied volatility of 0.4 with a put-to-call open interest ratio of 0.49 over 37 outstanding agreements suggesting investors are buying more calls than puts on contracts expiring on May 16th 2025. The total put volume is at 60.0, with calls trading at the volume of 68.0. This yields a 0.88 put-to-call volume ratio.

Open Interest Against May 16th 2025 Option Contracts

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

American Electric Maximum Pain Price Across 2025-05-16 Option Contracts

Max pain occurs when American Electric's market makers reach a net positive position across all American Electric's options at a strike price where option holders stand to lose the most money. By contrast, American Electric's option sellers may reap the most after selling more options than buying, causing them to expire worthless.

In The Money vs. Out of Money Option Contracts on American Electric

Analyzing American Electric's in-the-money options over time can help investors to take a profitable long position in American Electric regardless of its overall volatility. This is especially true when American Electric's options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money American Electric's options could be used as guardians of the underlying stock as they move almost dollar for dollar with American Electric's stock while costing only a fraction of its price.

American Electric Power In The Money Call Balance

When American Electric's strike price is surpassing the current stock price, the option contract against American Electric Power stock is said to be in the money. When it comes to buying American Electric's 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 American Electric Power 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.

American Current Options Market Mood

American Electric's 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 American 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 American Electric's options investors are not very successful. American Electric's 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 American contract

Base on the Rule 16, the options market is currently suggesting that American Electric Power will have an average daily up or down price movement of about 0.025% per day over the life of the 2025-05-16 option contract. With American Electric trading at USD 105.16, that is roughly USD 0.0263. If you think that the market is fully incorporating American Electric's daily price movement you should consider buying American Electric Power options at the current volatility level of 0.4%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
  
Purchasing American Electric 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" American calls. Remember, the seller must deliver American Electric Power stock to the call owner when a call is exercised.

American Electric Option Chain

When American Electric's strike price is surpassing the current stock price, the option contract against American Electric Power 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.
American Electric's option chain is a display of a range of information that helps investors for ways to trade options on American. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for American. It also shows strike prices and maturity days for a American Electric 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 IntStrike PriceCurrent SpreadLast Price
Call
AEP250516C00060000560.045.6 - 49.542.5In
Call
AEP250516C00070000270.035.7 - 39.622.81In
Call
AEP250516C000850005785.021.3 - 24.412.55In
Call
AEP250516C00090000113390.017.7 - 18.312.5In
Call
AEP250516C0009500018695.013.2 - 13.611.94In
Call
AEP250516C00100000458100.08.9 - 11.39.41In
Call
AEP250516C001050001183105.05.3 - 5.85.8In
Call
AEP250516C001100001195110.02.65 - 3.12.9Out
Call
AEP250516C00115000661115.00.85 - 1.251.2Out
Call
AEP250516C0012000025120.00.25 - 1.10.35Out
Call
AEP250516C001250003125.00.0 - 2.250.25Out
Call
AEP250516C001300000130.00.0 - 2.152.15Out
Call
AEP250516C001350000135.00.0 - 2.152.15Out
Call
AEP250516C001400000140.00.0 - 2.152.15Out
Call
AEP250516C001450000145.00.0 - 2.152.15Out
Call
AEP250516C001500000150.00.0 - 2.152.15Out
Call
AEP250516C001550000155.00.0 - 2.152.15Out
 Put
AEP250516P00055000255.00.0 - 1.20.05Out
 Put
AEP250516P00065000265.00.0 - 2.150.39Out
 Put
AEP250516P00070000270.00.0 - 0.750.23Out
 Put
AEP250516P000750003175.00.0 - 2.20.2Out
 Put
AEP250516P0008000096080.00.0 - 2.250.22Out
 Put
AEP250516P0008500033885.00.0 - 0.50.35Out
 Put
AEP250516P0009000046890.00.2 - 0.50.38Out
 Put
AEP250516P0009500025595.00.65 - 0.950.8Out
 Put
AEP250516P00100000278100.01.3 - 1.851.61Out
 Put
AEP250516P0010500082105.03.0 - 3.43.07Out
 Put
AEP250516P001100001110.05.5 - 5.86.6In
 Put
AEP250516P001150000115.07.2 - 9.47.2In
 Put
AEP250516P001200000120.011.3 - 14.811.3In
 Put
AEP250516P001250000125.016.1 - 20.116.1In
 Put
AEP250516P001300000130.021.1 - 24.821.1In
 Put
AEP250516P001350000135.026.1 - 30.526.1In
 Put
AEP250516P001400000140.031.1 - 35.431.1In
 Put
AEP250516P001450000145.036.1 - 39.936.1In
 Put
AEP250516P001500000150.041.2 - 45.141.2In
 Put
AEP250516P001550000155.046.1 - 49.946.1In

American Electric Market Cap Over Time

   Market Cap   
       Timeline  

American Total Stockholder Equity

Total Stockholder Equity

3.71 Billion

At this time, American Electric's Total Stockholder Equity is relatively stable compared to the past year.

American Electric Corporate Directors

Sara TuckerIndependent DirectorProfile
Ralph CrosbyIndependent DirectorProfile
Thomas HoaglinLead Independent DirectorProfile
David AndersonIndependent DirectorProfile

Additional Tools for American Stock Analysis

When running American Electric's price analysis, check to measure American Electric'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 American Electric is operating at the current time. Most of American Electric's value examination focuses on studying past and present price action to predict the probability of American Electric's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American Electric's price. Additionally, you may evaluate how the addition of American Electric to your portfolios can decrease your overall portfolio volatility.