CI Option Call 06-12-2024 325 Option on Cigna 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 Cigna Corp 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 Cigna Stock have intrinsic value and are priced higher than out-of-the-money options in the same chain, their volatilities are relatively smaller.

Buying Cigna Corp's call option is the simplest of option trades. A call option on Cigna Stock gives investors the right (but not the obligation) to purchase Cigna Corp at the given strike price. Therefore Cigna Corp's call intrinsic value or payoff at expiration depends on where the Cigna Stock price is relative to the call option strike price. The strike price of 325.0 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 Cigna Corp's price. Finally, at the break-even point of 325.0, the line crosses zero, and trading Cigna becomes profitable.

By selling Cigna Corp's call option, the investors signals his or her bearish sentiment. A short position in a call option written on Cigna Corp will generally make money when the underlying price goes down. Therefore Cigna Corp's call intrinsic value or payoff at expiration depends on where the Cigna Stock price is relative to the call option strike price. The strike price of 325.0 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 Cigna Corp's price. Finally, at the break-even point of 325.0, the line crosses zero, and trading Cigna becomes disadvantageous with no downside limits.

Cigna Corp's option chain is a display of a range of information that helps investors for ways to trade options on Cigna. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Cigna. It also shows strike prices and maturity days for a Cigna Corp 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 Trending Equities to better understand how to build diversified portfolios, which includes a position in Cigna Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product. For more detail on how to invest in Cigna Stock please use our How to Invest in Cigna Corp guide.You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

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