LECO241220P00175000 Option on Lincoln Electric Holdings
| LECO Stock | USD 216.62 0.48 0.22% |
Lincoln Electric's latest option contracts expiring on 2024-12-20 are carrying combined implied volatility of 0.41 with a put-to-call open interest ratio of 0.2 over 43 outstanding agreements suggesting investors are buying way more calls than puts on contracts expiring on 2024-12-20. The total put volume is at 25.0, with calls trading at the volume of 25.0. This yields a 0.23 put-to-call volume ratio.
Open Interest Against 2024-12-20 Option Contracts
2024-12-20
The chart above shows Lincoln 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. Lincoln Electric's open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Lincoln Electric's option, there is no secondary market available for investors to trade.
Lincoln Electric Maximum Pain Price across 2024-12-20 Option Contracts
Max pain occurs when Lincoln Electric's market makers reach a net positive position across all Lincoln Electric's options at a strike price where option holders stand to lose the most money. By contrast, Lincoln Electric's option sellers may reap the most after selling more options than buying, causing them to expire worthless.
Lincoln Electric's option chain provides insight into all available option contracts written on Lincoln Electric's stock. Investors can see outstanding put and call contracts with pricing information and greeks for a given expiration period. In addition, each of Lincoln Electric's stock options below provides a detailed picture of the payoff. Comparing vital and dynamic information of various option contracts across diverse expiration periods will help you make an educated decision on your market timing strategies around investing in a given Lincoln option contract.
In The Money vs. Out of Money Option Contracts on Lincoln Electric
Analyzing Lincoln Electric's in-the-money options over time can help investors to take a profitable long position in Lincoln Electric regardless of its overall volatility. This is especially true when Lincoln Electric's options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money Lincoln Electric's options could be used as guardians of the underlying stock as they move almost dollar for dollar with Lincoln Electric's stock while costing only a fraction of its price.
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Lincoln Electric Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.
Please note that buying 'in-the-money' options on Lincoln Electric lessens the impact of time decay, as they carry both intrinsic and time value. So, even if Lincoln Electric'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 Lincoln Electric 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 Lincoln Stock moves the wrong way.
Lincoln Electric Holdings In The Money Call Balance
When Lincoln Electric's strike price is surpassing the current stock price, the option contract against Lincoln Electric Holdings stock is said to be in the money. When it comes to buying Lincoln 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 Lincoln Electric Holdings 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.
Lincoln Current Options Market Mood
Lincoln 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 Lincoln 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 Lincoln Electric's options investors are not very successful. Lincoln 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 Lincoln contract
Base on the Rule 16, the options market is currently suggesting that Lincoln Electric Holdings will have an average daily up or down price movement of about 0.0256% per day over the life of the 2024-12-20 option contract. With Lincoln Electric trading at USD 216.62, that is roughly USD 0.0555. If you think that the market is fully incorporating Lincoln Electric's daily price movement you should consider buying Lincoln Electric Holdings options at the current volatility level of 0.41%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
Lincoln |
Purchasing Lincoln 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" Lincoln calls. Remember, the seller must deliver Lincoln Electric Holdings stock to the call owner when a call is exercised.
Lincoln Electric Option Chain
When Lincoln Electric's strike price is surpassing the current stock price, the option contract against Lincoln Electric Holdings 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.
Lincoln Electric's option chain is a display of a range of information that helps investors for ways to trade options on Lincoln. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Lincoln. It also shows strike prices and maturity days for a Lincoln 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 Int | Expiration | Current Spread | Last Price | |||
Call | LECO Option Call 20-12-2024 100 | 52 | 2024-12-20 | 92.2 - 97.0 | 93.66 | In |
Call | LECO Option Call 20-12-2024 105 | 10 | 2024-12-20 | 87.2 - 92.0 | 88.9 | In |
Call | LECO Option Call 20-12-2024 150 | 2 | 2024-12-20 | 54.0 - 58.8 | 42.49 | In |
Call | LECO Option Call 20-12-2024 175 | 8 | 2024-12-20 | 0.0 - 0.0 | 18.1 | In |
Call | LECO Option Call 20-12-2024 180 | 7 | 2024-12-20 | 19.1 - 21.1 | 8.8 | In |
Call | LECO Option Call 20-12-2024 185 | 11 | 2024-12-20 | 21.1 - 24.1 | 27.61 | In |
Call | LECO Option Call 20-12-2024 190 | 10 | 2024-12-20 | 5.4 - 8.0 | 14.9 | In |
Call | LECO Option Call 20-12-2024 195 | 0 | 2024-12-20 | 0.0 - 0.0 | 24.9 | In |
Call | LECO Option Call 20-12-2024 200 | 0 | 2024-12-20 | 0.0 - 0.0 | 19.63 | In |
Call | LECO Option Call 20-12-2024 210 | 0 | 2024-12-20 | 0.0 - 0.0 | 11.13 | In |
Call | LECO Option Call 20-12-2024 220 | 0 | 2024-12-20 | 0.0 - 0.0 | 5.3 | |
Call | LECO Option Call 20-12-2024 230 | 0 | 2024-12-20 | 0.0 - 0.0 | 3.3 | |
Call | LECO Option Call 20-12-2024 240 | 84 | 2024-12-20 | 0.0 - 4.8 | 1.5 | Out |
Call | LECO Option Call 20-12-2024 250 | 75 | 2024-12-20 | 0.0 - 4.8 | 1.05 | Out |
Call | LECO Option Call 20-12-2024 260 | 16 | 2024-12-20 | 0.0 - 4.8 | 1.95 | Out |
Call | LECO Option Call 20-12-2024 270 | 15 | 2024-12-20 | 0.0 - 4.8 | 1.5 | Out |
Call | LECO Option Call 20-12-2024 280 | 17 | 2024-12-20 | 0.0 - 2.45 | 1.75 | Out |
Call | LECO Option Call 20-12-2024 290 | 6 | 2024-12-20 | 0.0 - 4.8 | 0.85 | Out |
Call | LECO Option Call 20-12-2024 300 | 6 | 2024-12-20 | 0.0 - 0.0 | 0.85 | Out |
Call | LECO Option Call 20-12-2024 310 | 1 | 2024-12-20 | 0.0 - 0.0 | 1.4 | Out |
Call | LECO Option Call 20-12-2024 350 | 0 | 2024-12-20 | 0.0 - 0.0 | 0.05 | |
Call | LECO Option Call 20-12-2024 360 | 0 | 2024-12-20 | 0.0 - 0.0 | 0.25 | |
Put | LECO Option Put 20-12-2024 95 | 1 | 2024-12-20 | 0.0 - 0.65 | 0.25 | Out |
Put | LECO Option Put 20-12-2024 100 | 0 | 2024-12-20 | 0.0 - 0.0 | 0.25 | |
Put | LECO Option Put 20-12-2024 105 | 0 | 2024-12-20 | 0.0 - 0.0 | 0.3 | |
Put | LECO Option Put 20-12-2024 130 | 1 | 2024-12-20 | 0.0 - 4.8 | 1.1 | Out |
Put | LECO Option Put 20-12-2024 135 | 5 | 2024-12-20 | 0.0 - 4.8 | 1.25 | Out |
Put | LECO Option Put 20-12-2024 140 | 0 | 2024-12-20 | 0.0 - 0.0 | 0.3 | |
Put | LECO Option Put 20-12-2024 145 | 0 | 2024-12-20 | 0.0 - 0.0 | 1.05 | |
Put | LECO Option Put 20-12-2024 150 | 0 | 2024-12-20 | 0.0 - 0.0 | 0.86 | |
Put | LECO Option Put 20-12-2024 155 | 0 | 2024-12-20 | 0.0 - 0.0 | 1.15 | |
Put | LECO Option Put 20-12-2024 160 | 0 | 2024-12-20 | 0.0 - 0.0 | 1.25 | |
Put | LECO Option Put 20-12-2024 165 | 0 | 2024-12-20 | 0.0 - 0.0 | 2.0 | |
Put | LECO Option Put 20-12-2024 170 | 13 | 2024-12-20 | 0.0 - 4.8 | 2.75 | Out |
Put | LECO Option Put 20-12-2024 175 | 12 | 2024-12-20 | 4.7 - 9.5 | 5.2 | Out |
Put | LECO Option Put 20-12-2024 180 | 4 | 2024-12-20 | 0.55 - 3.8 | 4.5 | Out |
Put | LECO Option Put 20-12-2024 185 | 0 | 2024-12-20 | 0.0 - 0.0 | 5.8 | |
Put | LECO Option Put 20-12-2024 190 | 8 | 2024-12-20 | 0.1 - 4.9 | 7.5 | Out |
Put | LECO Option Put 20-12-2024 195 | 0 | 2024-12-20 | 0.0 - 0.0 | 2.15 | |
Put | LECO Option Put 20-12-2024 200 | 0 | 2024-12-20 | 0.0 - 0.0 | 0.65 | |
Put | LECO Option Put 20-12-2024 210 | 0 | 2024-12-20 | 0.0 - 0.0 | 2.75 | |
Put | LECO Option Put 20-12-2024 220 | 21 | 2024-12-20 | 24.0 - 27.6 | 43.0 | In |
Put | LECO Option Put 20-12-2024 250 | 0 | 2024-12-20 | 0.0 - 0.0 | 44.5 | In |
Lincoln Total Stockholder Equity
Total Stockholder Equity |
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Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Lincoln Electric Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. You can also try the Stocks Directory module to find actively traded stocks across global markets.
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 Lincoln Electric. If investors know Lincoln 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 Lincoln Electric 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 (0.20) | Dividend Share 2.84 | Earnings Share 8.38 | Revenue Per Share 71.184 | Quarterly Revenue Growth (0.05) |
The market value of Lincoln Electric Holdings is measured differently than its book value, which is the value of Lincoln that is recorded on the company's balance sheet. Investors also form their own opinion of Lincoln Electric's value that differs from its market value or its book value, called intrinsic value, which is Lincoln Electric'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 Lincoln Electric's market value can be influenced by many factors that don't directly affect Lincoln Electric'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 Lincoln Electric's value and its price as these two are different measures arrived at by different means. Investors typically determine if Lincoln Electric is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lincoln Electric'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.