Mercantile Bank Stock Options

MBWM Stock  USD 44.25  0.29  0.65%   
Mercantile Bank's latest option contracts expiring on June 20th 2025 are carrying combined implied volatility of 0.64 with a put-to-call open interest ratio of 0.25 over 21 outstanding agreements suggesting investors are buying way more calls than puts on contracts expiring on June 20th 2025.

Open Interest Against June 20th 2025 Option Contracts

The chart above shows Mercantile Bank'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. Mercantile Bank's open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Mercantile Bank's option, there is no secondary market available for investors to trade.

In The Money vs. Out of Money Option Contracts on Mercantile Bank

Analyzing Mercantile Bank's in-the-money options over time can help investors to take a profitable long position in Mercantile Bank regardless of its overall volatility. This is especially true when Mercantile Bank's options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money Mercantile Bank's options could be used as guardians of the underlying stock as they move almost dollar for dollar with Mercantile Bank's stock while costing only a fraction of its price.
Please note that buying 'in-the-money' options on Mercantile Bank lessens the impact of time decay, as they carry both intrinsic and time value. So, even if Mercantile Bank'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 Mercantile Bank 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 Mercantile Stock moves the wrong way.

Mercantile Bank In The Money Call Balance

When Mercantile Bank's strike price is surpassing the current stock price, the option contract against Mercantile Bank stock is said to be in the money. When it comes to buying Mercantile Bank'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 Mercantile Bank 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.

Mercantile Current Options Market Mood

Mercantile Bank'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 Mercantile 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

Most options investors, including buyers and sellers of Mercantile Bank's calls and puts, are not very successful. It is estimated that an average options trader loses somewhere between 80% to 90% of the time. Mercantile Bank'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 Mercantile contract

Base on the Rule 16, the options market is currently suggesting that Mercantile Bank will have an average daily up or down price movement of about 0.04% per day over the life of the 2025-06-20 option contract. With Mercantile Bank trading at USD 44.25, that is roughly USD 0.0177. If you think that the market is fully incorporating Mercantile Bank's daily price movement you should consider buying Mercantile Bank options at the current volatility level of 0.64%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
  
Purchasing Mercantile Bank 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" Mercantile calls. Remember, the seller must deliver Mercantile Bank stock to the call owner when a call is exercised.

Mercantile Bank Option Chain

When Mercantile Bank's strike price is surpassing the current stock price, the option contract against Mercantile Bank 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.
Mercantile Bank's option chain is a display of a range of information that helps investors for ways to trade options on Mercantile. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Mercantile. It also shows strike prices and maturity days for a Mercantile Bank 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 IntStrike PriceCurrent SpreadLast Price
Call
MBWM250620C00075000075.00.0 - 4.64.6Out
Call
MBWM250620C00070000070.00.0 - 4.64.6Out
Call
MBWM250620C00065000065.00.0 - 4.64.6Out
Call
MBWM250620C00060000060.00.0 - 4.64.6Out
Call
MBWM250620C00055000055.00.0 - 4.54.5Out
Call
MBWM250620C00050000750.00.0 - 4.81.5Out
Call
MBWM250620C00045000045.01.2 - 6.01.2Out
Call
MBWM250620C00040000040.05.0 - 9.05.0In
Call
MBWM250620C00035000035.09.0 - 13.59.0In
Call
MBWM250620C00030000130.014.1 - 17.914.3In
 Put
MBWM250620P00075000075.028.6 - 31.828.6In
 Put
MBWM250620P00070000070.023.6 - 26.423.6In
 Put
MBWM250620P00065000065.018.6 - 21.918.6In
 Put
MBWM250620P00060000060.013.6 - 17.013.6In
 Put
MBWM250620P00055000055.08.1 - 12.58.1In
 Put
MBWM250620P00050000050.03.9 - 8.33.9In
 Put
MBWM250620P00045000045.00.7 - 5.50.7In
 Put
MBWM250620P00040000040.00.0 - 4.64.6Out
 Put
MBWM250620P00035000035.00.0 - 4.74.7Out
 Put
MBWM250620P00030000130.00.0 - 4.81.3Out
 Put
MBWM250620P00025000125.00.0 - 4.70.75Out

Mercantile Bank Selling And Marketing Expenses Over Time

   Selling And Marketing Expenses   
       Timeline  

Mercantile Bank Market Cap Over Time

   Market Cap   
       Timeline  

Mercantile Total Stockholder Equity

Total Stockholder Equity

1.57 Billion

At this time, Mercantile Bank's Total Stockholder Equity is very stable compared to the past year.

Mercantile Bank Corporate Management

When determining whether Mercantile Bank is a strong investment it is important to analyze Mercantile Bank's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Mercantile Bank's future performance. For an informed investment choice regarding Mercantile Stock, refer to the following important reports:
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Mercantile Bank. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in housing.
To learn how to invest in Mercantile Stock, please use our How to Invest in Mercantile Bank guide.
You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Is Regional Banks 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 Mercantile Bank. If investors know Mercantile 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 Mercantile Bank 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
(0.02)
Dividend Share
1.42
Earnings Share
4.93
Revenue Per Share
13.891
Quarterly Revenue Growth
0.034
The market value of Mercantile Bank is measured differently than its book value, which is the value of Mercantile that is recorded on the company's balance sheet. Investors also form their own opinion of Mercantile Bank's value that differs from its market value or its book value, called intrinsic value, which is Mercantile Bank'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 Mercantile Bank's market value can be influenced by many factors that don't directly affect Mercantile Bank'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 Mercantile Bank's value and its price as these two are different measures arrived at by different means. Investors typically determine if Mercantile Bank is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Mercantile Bank'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.