Pearson PLC Stock Options
| PSO Stock | USD 15.75 0.06 0.38% |
Pearson PLC's latest option contracts expiring on March 21st 2025 are carrying combined implied volatility of 1.06 with a put-to-call open interest ratio of 0.03 over 20 outstanding agreements suggesting investors are buying way more calls than puts on contracts expiring on March 21st 2025.
Open Interest Against March 21st 2025 Option Contracts
2025-03-21
The chart above shows Pearson PLC'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. Pearson PLC's open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Pearson PLC's option, there is no secondary market available for investors to trade.
In The Money vs. Out of Money Option Contracts on Pearson PLC
Analyzing Pearson PLC's in-the-money options over time can help investors to take a profitable long position in Pearson PLC regardless of its overall volatility. This is especially true when Pearson PLC's options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money Pearson PLC's options could be used as guardians of the underlying stock as they move almost dollar for dollar with Pearson PLC's stock while costing only a fraction of its price.
Please note that buying 'in-the-money' options on Pearson PLC lessens the impact of time decay, as they carry both intrinsic and time value. So, even if Pearson PLC'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 Pearson PLC 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 Pearson Stock moves the wrong way.
Pearson PLC ADR In The Money Call Balance
When Pearson PLC's strike price is surpassing the current stock price, the option contract against Pearson PLC ADR stock is said to be in the money. When it comes to buying Pearson PLC'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 Pearson PLC ADR 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.
Pearson Current Options Market Mood
Pearson PLC'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 Pearson 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 Pearson PLC'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. Pearson PLC'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 Pearson contract
Base on the Rule 16, the options market is currently suggesting that Pearson PLC ADR will have an average daily up or down price movement of about 0.0663% per day over the life of the 2025-03-21 option contract. With Pearson PLC trading at USD 15.75, that is roughly USD 0.0104. If you think that the market is fully incorporating Pearson PLC's daily price movement you should consider buying Pearson PLC ADR options at the current volatility level of 1.06%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
Pearson |
Purchasing Pearson PLC 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" Pearson calls. Remember, the seller must deliver Pearson PLC ADR stock to the call owner when a call is exercised.
Pearson PLC Option Chain
When Pearson PLC's strike price is surpassing the current stock price, the option contract against Pearson PLC ADR 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.
Pearson PLC's option chain is a display of a range of information that helps investors for ways to trade options on Pearson. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Pearson. It also shows strike prices and maturity days for a Pearson PLC 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 | PSO250321C00005000 | 0 | 5.0 | 8.9 - 12.8 | 8.9 | In |
Call | PSO250321C00007500 | 1 | 7.5 | 6.4 - 10.3 | 6.0 | In |
Call | PSO250321C00010000 | 2 | 10.0 | 4.6 - 7.7 | 4.38 | In |
Call | PSO250321C00012500 | 0 | 12.5 | 2.4 - 5.4 | 2.4 | In |
Call | PSO250321C00015000 | 2 | 15.0 | 0.0 - 2.45 | 1.4 | In |
Call | PSO250321C00017500 | 111 | 17.5 | 0.1 - 0.5 | 0.18 | Out |
Call | PSO250321C00020000 | 71 | 20.0 | 0.0 - 0.2 | 0.1 | Out |
Call | PSO250321C00022500 | 0 | 22.5 | 0.0 - 0.75 | 0.75 | |
Call | PSO250321C00025000 | 0 | 25.0 | 0.0 - 0.75 | 0.75 | |
Call | PSO250321C00030000 | 0 | 30.0 | 0.0 - 0.75 | 0.75 | |
Put | PSO250321P00005000 | 0 | 5.0 | 0.0 - 0.75 | 0.75 | |
Put | PSO250321P00007500 | 0 | 7.5 | 0.0 - 0.75 | 0.75 | |
Put | PSO250321P00010000 | 0 | 10.0 | 0.0 - 0.75 | 0.75 | |
Put | PSO250321P00012500 | 1 | 12.5 | 0.0 - 0.75 | 2.05 | Out |
Put | PSO250321P00015000 | 4 | 15.0 | 0.0 - 0.7 | 0.75 | Out |
Put | PSO250321P00017500 | 0 | 17.5 | 0.0 - 2.9 | 2.9 | In |
Put | PSO250321P00020000 | 0 | 20.0 | 2.25 - 6.2 | 2.25 | In |
Put | PSO250321P00022500 | 0 | 22.5 | 4.6 - 8.7 | 4.6 | In |
Put | PSO250321P00025000 | 0 | 25.0 | 7.1 - 11.2 | 7.1 | In |
Put | PSO250321P00030000 | 0 | 30.0 | 12.1 - 16.2 | 12.1 | In |
Pearson PLC Selling And Marketing Expenses Over Time
Selling And Marketing Expenses |
| Timeline |
Pearson Total Stockholder Equity
Total Stockholder Equity |
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Pearson PLC Corporate Directors
| Linda Lorimer | Independent Non-Executive Director | Profile | |
| Vivienne Cox | Senior Non-Executive Independent Director | Profile | |
| Josh Lewis | Non-Executive Independent Director | Profile | |
| Sally Johnson | Chief Financial Officer, Executive Director | Profile |
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Pearson PLC ADR. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state. You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Is Publishing 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 Pearson PLC. If investors know Pearson 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 Pearson PLC 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 (0.12) | Dividend Share 0.231 | Earnings Share 0.61 | Revenue Per Share | Quarterly Revenue Growth (0.07) |
The market value of Pearson PLC ADR is measured differently than its book value, which is the value of Pearson that is recorded on the company's balance sheet. Investors also form their own opinion of Pearson PLC's value that differs from its market value or its book value, called intrinsic value, which is Pearson PLC'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 Pearson PLC's market value can be influenced by many factors that don't directly affect Pearson PLC'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 Pearson PLC's value and its price as these two are different measures arrived at by different means. Investors typically determine if Pearson PLC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Pearson PLC'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.