Frontline Stock Options
FRO Stock | USD 17.36 0.13 0.74% |
Frontline's latest option contracts expiring on March 21st 2025 are carrying combined implied volatility of 0.92 with a put-to-call open interest ratio of 2.5 over 22 outstanding agreements suggesting investors are buying way more puts than calls on contracts expiring on March 21st 2025.
Open Interest Against March 21st 2025 Option Contracts
2025-03-21
The chart above shows Frontline'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. Frontline's open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Frontline's option, there is no secondary market available for investors to trade.
In The Money vs. Out of Money Option Contracts on Frontline
Analyzing Frontline's in-the-money options over time can help investors to take a profitable long position in Frontline regardless of its overall volatility. This is especially true when Frontline's options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money Frontline's options could be used as guardians of the underlying stock as they move almost dollar for dollar with Frontline's stock while costing only a fraction of its price.
Please note that buying 'in-the-money' options on Frontline lessens the impact of time decay, as they carry both intrinsic and time value. So, even if Frontline's value remains static through the expiration date, the investor can sell to close an 'in-the-money' option to avoid a potential loss. However, in-the-money Frontline contracts are usually more expensive to enter than their out-of-the-money counterparts. So keep in mind that while the payoffs on an in-the-money trade can be high, the investors could ultimately experience a more consequential loss if Frontline Stock moves the wrong way.
Frontline Current Options Market Mood
Frontline'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 Frontline 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 Frontline's options investors are not very successful. Frontline'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 Frontline contract
Base on the Rule 16, the options market is currently suggesting that Frontline will have an average daily up or down price movement of about 0.0575% per day over the life of the 2025-03-21 option contract. With Frontline trading at USD 17.36, that is roughly USD 0.009982. If you think that the market is fully incorporating Frontline's daily price movement you should consider buying Frontline options at the current volatility level of 0.92%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
Frontline |
Purchasing Frontline 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" Frontline calls. Remember, the seller must deliver Frontline stock to the call owner when a call is exercised.
Frontline Option Chain
When Frontline's strike price is surpassing the current stock price, the option contract against Frontline 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.
Frontline's option chain is a display of a range of information that helps investors for ways to trade options on Frontline. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Frontline. It also shows strike prices and maturity days for a Frontline 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 Int | Strike Price | Current Spread | Last Price | |||
Call | FRO250321C00018000 | 4 | 18.0 | 0.95 - 1.3 | 1.15 | Out |
Call | FRO250321C00020000 | 0 | 20.0 | 0.0 - 1.2 | 0.75 | |
Call | FRO250321C00021000 | 0 | 21.0 | 0.0 - 0.95 | 0.95 | |
Call | FRO250321C00022000 | 0 | 22.0 | 0.0 - 2.2 | 2.2 | |
Call | FRO250321C00023000 | 0 | 23.0 | 0.0 - 1.25 | 1.25 | |
Call | FRO250321C00024000 | 0 | 24.0 | 0.0 - 1.2 | 1.2 | |
Call | FRO250321C00025000 | 0 | 25.0 | 0.0 - 1.2 | 1.2 | |
Call | FRO250321C00026000 | 0 | 26.0 | 0.0 - 1.15 | 1.15 | |
Call | FRO250321C00027000 | 0 | 27.0 | 0.0 - 2.2 | 2.2 | |
Call | FRO250321C00030000 | 0 | 30.0 | 0.0 - 2.15 | 2.15 | |
Call | FRO250321C00035000 | 0 | 35.0 | 0.0 - 2.15 | 2.15 | |
Put | FRO250321P00018000 | 10 | 18.0 | 0.55 - 4.0 | 2.0 | In |
Put | FRO250321P00020000 | 0 | 20.0 | 1.8 - 6.0 | 1.8 | In |
Put | FRO250321P00021000 | 0 | 21.0 | 2.3 - 7.0 | 2.3 | In |
Put | FRO250321P00022000 | 0 | 22.0 | 3.4 - 8.0 | 3.4 | In |
Put | FRO250321P00023000 | 0 | 23.0 | 4.1 - 8.5 | 4.1 | In |
Put | FRO250321P00024000 | 0 | 24.0 | 5.3 - 9.5 | 5.3 | In |
Put | FRO250321P00025000 | 0 | 25.0 | 6.3 - 10.5 | 6.3 | In |
Put | FRO250321P00026000 | 0 | 26.0 | 7.0 - 11.5 | 7.0 | In |
Put | FRO250321P00027000 | 0 | 27.0 | 8.0 - 12.5 | 8.0 | In |
Put | FRO250321P00030000 | 0 | 30.0 | 11.2 - 15.5 | 11.2 | In |
Put | FRO250321P00035000 | 0 | 35.0 | 16.0 - 20.5 | 16.0 | In |
Frontline Selling And Marketing Expenses Over Time
Selling And Marketing Expenses |
Timeline |
Frontline Total Stockholder Equity
Total Stockholder Equity |
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Frontline Corporate Executives
Elected by the shareholders, the Frontline's board of directors comprises two types of representatives: Frontline inside directors who are chosen from within the company, and outside directors, selected externally and held independent of Frontline. The board's role is to monitor Frontline's management team and ensure that shareholders' interests are well served. Frontline's inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, Frontline's outside directors are responsible for providing unbiased perspectives on the board's policies.
Inger Klemp | Chief Financial Officer of Frontline Management AS, Principal Financial Officer | Profile |
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Frontline. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. To learn how to invest in Frontline Stock, please use our How to Invest in Frontline guide.You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Is Oil & Gas Storage & 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 Frontline. If investors know Frontline 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 Frontline 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 (0.19) | Earnings Share 2.46 | Revenue Per Share | Quarterly Revenue Growth 0.084 | Return On Assets |
The market value of Frontline is measured differently than its book value, which is the value of Frontline that is recorded on the company's balance sheet. Investors also form their own opinion of Frontline's value that differs from its market value or its book value, called intrinsic value, which is Frontline'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 Frontline's market value can be influenced by many factors that don't directly affect Frontline'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 Frontline's value and its price as these two are different measures arrived at by different means. Investors typically determine if Frontline is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Frontline'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.