HMY Option Call 20-12-2024 5 Option on Harmony Gold Mining

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

Buying Harmony Gold's call option is the simplest of option trades. A call option on Harmony Stock gives investors the right (but not the obligation) to purchase Harmony Gold at the given strike price. Therefore Harmony Gold's call intrinsic value or payoff at expiration depends on where the Harmony Stock price is relative to the call option strike price. The strike price of 5.0 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 Harmony Gold's price. Finally, at the break-even point of 5.0, the line crosses zero, and trading Harmony becomes profitable.

By selling Harmony Gold's call option, the investors signals his or her bearish sentiment. A short position in a call option written on Harmony Gold will generally make money when the underlying price goes down. Therefore Harmony Gold's call intrinsic value or payoff at expiration depends on where the Harmony Stock price is relative to the call option strike price. The strike price of 5.0 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 Harmony Gold's price. Finally, at the break-even point of 5.0, the line crosses zero, and trading Harmony becomes disadvantageous with no downside limits.

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

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