2024-05-17 PUT at $97.5 Option on Novartis AG ADR
| NVS Stock | USD 97.27 0.07 0.07% |
2024-05-17 PUT at $97.5 is a PUT option contract on Novartis' common stock with a strick price of 97.5 expiring on 2024-05-17. The contract was last traded on 2024-05-02 at 13:35:55 for $1.2 and, as of today, has 14 days remaining before the expiration. The option is currently trading at a bid price of $1.2, and an ask price of $1.3. The implied volatility as of the 3rd of May is 13.63.
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Novartis AG ADR. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in real.
Novartis |
A put option written on Novartis becomes more valuable as the price of Novartis drops. Conversely, Novartis' put option loses its value as Novartis Stock rises. When exercised, put options on Novartis produce a short position in Novartis Stock. Because of this protective nature, they are typically used either for hedging purposes or to capitalize on Novartis' downside price movement.
Rule 16 of 2024-05-17 Option Contract
The options market is anticipating that Novartis AG ADR will have an average daily up or down price movement of about 0.85% per day over the life of the option. With Novartis trading at USD 97.27, that is roughly USD 0.83. If you think that the market is fully understating Novartis' daily price movement you should consider buying Novartis AG ADR options at that current volatility level of 13.63%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
In The Money Put Option on Novartis
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 Novartis 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 Novartis Stock have intrinsic value and are priced higher than out-of-the-money options in the same chain, their volatilities are relatively smaller.
| Put Contract Name | 2024-05-17 PUT at $97.5 |
| Expires On | 2024-05-17 |
| Days Before Expriration | 14 |
| Last Traded On | 2024-05-02 13:35:55 |
| Contract Period | MONTHLY |
| Open Interest | 177 |
| Current Trading Volume | 34.0 |
| Strike Price | 97.5 |
| Last Traded At | 1.2 |
| Current Price Spread | 1.2 | 1.3 |
| Rule 16 Daily Up or Down | USD0.83 |
Novartis short PUT Option Greeks
Novartis' Option Greeks for the contract ending on 2024-05-17 at a strike price of 97.5 measures the various factors that affect its cost and calculated using a theoretical options pricing model. It helps investors make more informed decisions about whether to trade this option contract or when to trade it. In addition to Novartis' option greeks, its implied volatility helps estimate the risk of Novartis stock implied by the prices of the options on Novartis' stock.
| Delta | -0.5412 | |
| Gamma | 0.1521 | |
| Theta | -0.0425 | |
| Vega | 0.0753 | |
| Rho | -0.0207 |
Novartis long PUT Option Payoff at expiration
Put options written on Novartis grant holders of the option the right to sell a specified amount of Novartis at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Novartis Stock cannot fall below zero, the put buyer does gain as the price drops. So, purchasing a put option on Novartis is like buying insurance aginst Novartis' downside shift.
Profit |
| Novartis Price At Expiration |
Novartis short PUT Option Payoff at expiration
By selling Novartis' put option, the investors signal their bearish sentiment. A short position in a put option written on Novartis will generally make money when the underlying price is above the strike price. Therefore Novartis' put payoff at expiration depends on where the Novartis Stock price is relative to the put option strike price. The breakeven price of 96.3 is the critical point that divides the payoff function into two parts. Below the breakeven price, the payoff is dropping and negative (the seller makes a loss). Above the breakeven price, the payoff line is upward sloping as the option payoff increases in proportion to Novartis' price. Finally, at the strike price of 97.5, the payoff chart is constant and positive.
Profit |
| Novartis Price At Expiration |
Novartis AG ADR Available Put Options
Novartis' option chain is a display of a range of information that helps investors for ways to trade options on Novartis. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Novartis. It also shows strike prices and maturity days for a Novartis 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.
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | 2024-05-17 PUT at $90.0 | -0.0795 | 0.0273 | 445 | 2024-05-17 | 0.05 - 0.2 | 0.2 | Out |
Put | 2024-05-17 PUT at $92.5 | -0.0884 | 0.0443 | 643 | 2024-05-17 | 0.1 - 0.2 | 0.13 | Out |
Put | 2024-05-17 PUT at $95.0 | -0.2259 | 0.0996 | 586 | 2024-05-17 | 0.35 - 0.5 | 0.4 | Out |
Put | 2024-05-17 PUT at $97.5 | -0.5412 | 0.1521 | 177 | 2024-05-17 | 1.2 - 1.3 | 1.2 | In |
Put | 2024-05-17 PUT at $100.0 | -0.8162 | 0.0875 | 74 | 2024-05-17 | 2.15 - 3.1 | 3.2 | In |
Put | 2024-05-17 PUT at $105.0 | -0.9644 | 0.0178 | 0 | 2024-05-17 | 6.0 - 9.7 | 10.3 | In |
Put | 2024-05-17 PUT at $110.0 | -0.9555 | 0.0129 | 0 | 2024-05-17 | 11.2 - 14.6 | 0.0 | In |
Put | 2024-05-17 PUT at $115.0 | -0.7903 | 0.0158 | 0 | 2024-05-17 | 15.7 - 19.7 | 0.0 | In |
Put | 2024-05-17 PUT at $120.0 | -0.8093 | 0.013 | 0 | 2024-05-17 | 20.7 - 24.7 | 0.0 | In |
Put | 2024-05-17 PUT at $125.0 | -0.8284 | 0.011 | 0 | 2024-05-17 | 25.7 - 29.6 | 0.0 | In |
Put | 2024-05-17 PUT at $130.0 | -0.8391 | 0.0096 | 0 | 2024-05-17 | 30.7 - 34.6 | 0.0 | In |
Put | 2024-05-17 PUT at $135.0 | -0.8429 | 0.0086 | 0 | 2024-05-17 | 35.7 - 39.7 | 0.0 | In |
Put | 2024-05-17 PUT at $140.0 | -0.85 | 0.0078 | 0 | 2024-05-17 | 40.7 - 44.7 | 0.0 | In |
Put | 2024-05-17 PUT at $145.0 | -0.8561 | 0.0071 | 0 | 2024-05-17 | 45.7 - 49.7 | 0.0 | In |
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Novartis Corporate Directors
Novartis corporate directors refer to members of a Novartis board of directors. The board of directors generally takes responsibility for the Novartis' affairs and long-term direction of the entity. A corporate director does not make decisions for the corporation on his own. As a member of the board of directors, she or he must function as a part of a group that makes decisions on behalf of the business only by the board of directors' meetings. To pass a resolution, a majority of Novartis' board members must vote for the resolution. The Novartis board of directors' duties also include the election, removal, and supervision of officers, including the adoption, amendment, and repeal of bylaws.| Ton Buechner | Non-Executive Independent Director | Profile | |
| Pierre Landolt | Member of the Board of Directors | Profile | |
| Elizabeth Doherty | Non-Executive Independent Director | Profile | |
| Srikant Datar | Non-Executive Independent Director | Profile |
Already Invested in Novartis AG ADR?
The danger of trading Novartis AG ADR is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Novartis is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Novartis. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Novartis AG ADR is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Novartis AG ADR is a strong investment it is important to analyze Novartis' 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 Novartis' future performance. For an informed investment choice regarding Novartis Stock, refer to the following important reports: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Novartis AG ADR. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in real. You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.
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When running Novartis' price analysis, check to measure Novartis' 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 Novartis is operating at the current time. Most of Novartis' value examination focuses on studying past and present price action to predict the probability of Novartis' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Novartis' price. Additionally, you may evaluate how the addition of Novartis to your portfolios can decrease your overall portfolio volatility.
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Is Novartis' industry 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 Novartis. If investors know Novartis 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 Novartis 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 0.215 | Dividend Share 3.919 | Earnings Share 4.4 | Revenue Per Share 23.168 | Quarterly Revenue Growth 0.097 |
The market value of Novartis AG ADR is measured differently than its book value, which is the value of Novartis that is recorded on the company's balance sheet. Investors also form their own opinion of Novartis' value that differs from its market value or its book value, called intrinsic value, which is Novartis' 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 Novartis' market value can be influenced by many factors that don't directly affect Novartis' 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 Novartis' value and its price as these two are different measures arrived at by different means. Investors typically determine if Novartis is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Novartis' 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.