Energy Select Stock Options
| XLE Etf | USD 87.47 0.81 0.93% |
Energy Select's latest option contracts expiring on January 10th 2025 are carrying combined implied volatility of 0.68 with a put-to-call open interest ratio of 9.71 over 27 outstanding agreements suggesting investors are buying way more puts than calls on contracts expiring on January 10th 2025.
Open Interest Against January 10th 2025 Option Contracts
2025-01-10
The chart above shows Energy Select'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. Energy Select's open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Energy Select's option, there is no secondary market available for investors to trade.
In The Money vs. Out of Money Option Contracts on Energy Select
Analyzing Energy Select's in-the-money options over time can help investors to take a profitable long position in Energy Select regardless of its overall volatility. This is especially true when Energy Select's options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money Energy Select's options could be used as guardians of the underlying stock as they move almost dollar for dollar with Energy Select's stock while costing only a fraction of its price.
Energy Select's stock options are financial instruments that give investors the right to buy or sell shares of Energy Select Sector common stock at a specified price for a given time period. Generally speaking, an option to purchase or sell Energy stock makes it part of the underlying stock when the option's price is tied to the movement of the underlying stock. If Energy Select's stock price goes up or down, the stock options follow.
Energy Select Sector In The Money Call Balance
When Energy Select's strike price is surpassing the current stock price, the option contract against Energy Select Sector stock is said to be in the money. When it comes to buying Energy Select'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 Energy Select Sector 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.
Energy Current Options Market Mood
Energy Select'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 Energy Etf'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 Energy Select's options investors are not very successful. Energy Select'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 Energy contract
Base on the Rule 16, the options market is currently suggesting that Energy Select Sector will have an average daily up or down price movement of about 0.0425% per day over the life of the 2025-01-10 option contract. With Energy Select trading at USD 87.47, that is roughly USD 0.0372. If you think that the market is fully incorporating Energy Select's daily price movement you should consider buying Energy Select Sector options at the current volatility level of 0.68%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
Energy |
Purchasing Energy Select 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" Energy calls. Remember, the seller must deliver Energy Select Sector stock to the call owner when a call is exercised.
Energy Select Option Chain
When Energy Select's strike price is surpassing the current stock price, the option contract against Energy Select Sector 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.
Energy Select's option chain is a display of a range of information that helps investors for ways to trade options on Energy. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Energy. It also shows strike prices and maturity days for a Energy Select 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 | XLE250110C00050000 | 0 | 50.0 | 43.05 - 47.95 | 43.05 | In |
Call | XLE250110C00055000 | 0 | 55.0 | 38.05 - 43.0 | 38.05 | In |
Call | XLE250110C00060000 | 0 | 60.0 | 33.05 - 38.0 | 33.05 | In |
Call | XLE250110C00065000 | 0 | 65.0 | 28.1 - 33.0 | 28.1 | In |
Call | XLE250110C00070000 | 0 | 70.0 | 23.1 - 28.0 | 23.1 | In |
Call | XLE250110C00075000 | 0 | 75.0 | 18.1 - 23.0 | 18.1 | In |
Call | XLE250110C00080000 | 0 | 80.0 | 13.1 - 18.0 | 13.1 | In |
Call | XLE250110C00085000 | 0 | 85.0 | 8.15 - 13.0 | 8.15 | In |
Call | XLE250110C00086000 | 0 | 86.0 | 7.2 - 12.0 | 7.2 | In |
Call | XLE250110C00087000 | 0 | 87.0 | 6.25 - 11.0 | 6.25 | In |
Call | XLE250110C00090500 | 1 | 90.5 | 3.2 - 8.0 | 5.57 | In |
Call | XLE250110C00093500 | 2 | 93.5 | 1.03 - 5.85 | 3.45 | In |
Call | XLE250110C00094000 | 1 | 94.0 | 0.71 - 5.5 | 3.15 | In |
Call | XLE250110C00096500 | 2 | 96.5 | 0.0 - 4.8 | 1.78 | Out |
Call | XLE250110C00101000 | 1 | 101.0 | 0.0 - 2.82 | 0.37 | Out |
Put | XLE250110P00050000 | 0 | 50.0 | 0.0 - 2.38 | 2.38 | |
Put | XLE250110P00055000 | 0 | 55.0 | 0.0 - 2.38 | 2.38 | |
Put | XLE250110P00060000 | 0 | 60.0 | 0.0 - 2.38 | 2.38 | |
Put | XLE250110P00065000 | 0 | 65.0 | 0.0 - 2.13 | 2.13 | |
Put | XLE250110P00070000 | 0 | 70.0 | 0.0 - 2.13 | 2.13 | |
Put | XLE250110P00075000 | 0 | 75.0 | 0.0 - 2.13 | 2.13 | |
Put | XLE250110P00080000 | 0 | 80.0 | 0.0 - 2.14 | 2.14 | |
Put | XLE250110P00085000 | 0 | 85.0 | 0.0 - 2.24 | 2.24 | |
Put | XLE250110P00086000 | 0 | 86.0 | 0.0 - 2.29 | 2.29 | |
Put | XLE250110P00087000 | 0 | 87.0 | 0.0 - 2.36 | 2.36 | |
Put | XLE250110P00089000 | 67 | 89.0 | 0.0 - 2.59 | 0.38 | Out |
Put | XLE250110P00091000 | 1 | 91.0 | 0.0 - 2.95 | 0.71 | Out |
Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Energy Select Sector. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis. You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
The market value of Energy Select Sector is measured differently than its book value, which is the value of Energy that is recorded on the company's balance sheet. Investors also form their own opinion of Energy Select's value that differs from its market value or its book value, called intrinsic value, which is Energy Select'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 Energy Select's market value can be influenced by many factors that don't directly affect Energy Select'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 Energy Select's value and its price as these two are different measures arrived at by different means. Investors typically determine if Energy Select is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Energy Select'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.