FSLR260116P00240000 Option on First Solar

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 First Solar 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 First Stock have intrinsic value and are priced higher than out-of-the-money options in the same chain, their volatilities are relatively smaller.

First Solar's Option Greeks for the contract ending on 2026-01-16 at a strike price of 240.0 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 First Solar's option greeks, its implied volatility helps estimate the risk of First Solar stock implied by the prices of the options on First Solar's stock.

Put options written on First Solar grant holders of the option the right to sell a specified amount of First Solar 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 First Stock cannot fall below zero, the put buyer does gain as the price drops. So, purchasing a put option on First Solar is like buying insurance aginst First Solar's downside shift.

By selling First Solar's put option, the investors signal their bearish sentiment. A short position in a put option written on First Solar will generally make money when the underlying price is above the strike price. Therefore First Solar's put payoff at expiration depends on where the First Stock price is relative to the put option strike price. The breakeven price of 211.2 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 First Solar's price. Finally, at the strike price of 240.0, the payoff chart is constant and positive.

First Solar's option chain is a display of a range of information that helps investors for ways to trade options on First. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for First. It also shows strike prices and maturity days for a First Solar 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.

When running First Solar's price analysis, check to measure First Solar's 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 First Solar is operating at the current time. Most of First Solar's value examination focuses on studying past and present price action to predict the probability of First Solar's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move First Solar's price. Additionally, you may evaluate how the addition of First Solar to your portfolios can decrease your overall portfolio volatility.