GENC250117P00020000 Option on Gencor Industries

An 'Out of The Money' option on Gencor has a strike price that Gencor Stock has yet to reach, meaning the option has no intrinsic value. 'Out of The Money' options are usually less costly than 'In The Money' options, making them more desirable to traders with smaller amounts of capital. Some of the uses for Gencor Industries' 'Out of The Money' options include buying the options if you expect a big move in Gencor Industries' stock. Since 'Out of The Money' options have a lower up-front cost (i.e., no intrinsic value) than 'In The Money' options, buying it is a reasonable choice.

Put options written on Gencor Industries grant holders of the option the right to sell a specified amount of Gencor Industries at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Gencor Stock cannot fall below zero, the put buyer does gain as the price drops. So, purchasing a put option on Gencor Industries is like buying insurance aginst Gencor Industries' downside shift.

By selling Gencor Industries' put option, the investors signal their bearish sentiment. A short position in a put option written on Gencor Industries will generally make money when the underlying price is above the strike price. Therefore Gencor Industries' put payoff at expiration depends on where the Gencor Stock price is relative to the put option strike price. The breakeven price of 20.0 is the critical point that divides the payoff function into two parts. Below the breakeven price, the payoff is dropping and negative (the seller makes a loss). Above the breakeven price, the payoff line is upward sloping as the option payoff increases in proportion to Gencor Industries' price. Finally, at the strike price of 20.0, the payoff chart is constant and positive.

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

Elected by the shareholders, the Gencor Industries' board of directors comprises two types of representatives: Gencor Industries inside directors who are chosen from within the company, and outside directors, selected externally and held independent of Gencor. The board's role is to monitor Gencor Industries' management team and ensure that shareholders' interests are well served. Gencor Industries' inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, Gencor Industries' outside directors are responsible for providing unbiased perspectives on the board's policies.

Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Gencor Industries. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. For information on how to trade Gencor Stock refer to our How to Trade Gencor Stock guide.You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.

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