Webster Financial Stock Options
| WBS Stock | USD 47.43 0.60 1.25% |
Webster Financial's latest option contracts expiring on 2024-10-18 are carrying combined implied volatility of 62.28 with a put-to-call open interest ratio of 1.09 over 22 outstanding agreements suggesting investors are buying slightly more puts than calls on contracts expiring on 2024-10-18. The current put volume is at 44.0, with calls trading at the volume of 9.0. This yields a 4.89 put-to-call volume ratio.
Open Interest Against 2024-10-18 Option Contracts
Webster Financial option prices can potentially be used to forecast stock returns because most option chains provide information not only about the current prices but also about the future conditions in Webster Financial's lending market. For example, when Webster Financial's puts are not actively trading or completely missing in the marketplace, investors can use it to internalize expected shorting costs. So if an investor is writing a put option on Webster Financial, he or she must hedge the risk by shorting Webster Financial stock over its option's life.
2024-10-18
The chart above shows Webster Financial'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. Webster Financial's open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Webster Financial's option, there is no secondary market available for investors to trade.
Webster Financial Maximum Pain Price across 2024-10-18 Option Contracts
Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of particular securities such as Webster Financial close to expiration to expire worthless. According to most research, approximately 10% to 15% of all stock options are exercised, while about 35% expire worthlessly, with roughly 50% traded out before the expiration date. So, Max pain occurs when market makers reach a net positive position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthless.
Webster Financial's option chain provides insight into all available option contracts written on Webster Financial's stock. Investors can see outstanding put and call contracts with pricing information and greeks for a given expiration period. In addition, each of Webster Financial's stock options below provides a detailed picture of the payoff. Comparing vital and dynamic information of various option contracts across diverse expiration periods will help you make an educated decision on your market timing strategies around investing in a given Webster option contract.
In The Money vs. Out of Money Option Contracts on Webster Financial
Analyzing Webster Financial's in-the-money options over time can help investors to take a profitable long position in Webster Financial regardless of its overall volatility. This is especially true when Webster Financial's options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money Webster Financial's options could be used as guardians of the underlying stock as they move almost dollar for dollar with Webster Financial's stock while costing only a fraction of its price.
Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Webster Financial. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics.
Webster Financial In The Money Call Balance
When Webster Financial's strike price is surpassing the current stock price, the option contract against Webster Financial stock is said to be in the money. When it comes to buying Webster Financial'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 Webster Financial 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.
Webster Current Options Market Mood
Webster Financial'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 Webster 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 Webster Financial'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. Webster Financial'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. Using current Webster Financial's option volume and open interest to make an investment decision is considered a contrarian-sentiment measure that can be utilized in many timing strategies in both derivative and spot marketplace.
Rule 16 of the current Webster contract
Base on the Rule 16, the options market is currently suggesting that Webster Financial will have an average daily up or down price movement of about 3.89% per day over the life of the 2024-10-18 option contract. With Webster Financial trading at USD 47.43, that is roughly USD 1.85. If you think that the market is fully incorporating Webster Financial's daily price movement you should consider buying Webster Financial options at the current volatility level of 62.28%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
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Purchasing Webster Financial 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" Webster calls. Remember, the seller must deliver Webster Financial stock to the call owner when a call is exercised.
Webster Financial Option Chain
When Webster Financial's strike price is surpassing the current stock price, the option contract against Webster Financial 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.
Webster Financial's option chain is a display of a range of information that helps investors for ways to trade options on Webster. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Webster. It also shows strike prices and maturity days for a Webster Financial 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 | |||
Call | 2024-10-18 CALL at $22.5 | 0.9732 | 0.0029 | 0 | 2024-10-18 | 22.8 - 27.5 | 0.0 | In |
Call | 2024-10-18 CALL at $25.0 | 0.9854 | 0.0024 | 0 | 2024-10-18 | 20.1 - 24.9 | 0.0 | In |
Call | 2024-10-18 CALL at $30.0 | 0.8633 | 0.0082 | 0 | 2024-10-18 | 15.0 - 19.8 | 0.0 | In |
Call | 2024-10-18 CALL at $35.0 | 0.9565 | 0.0101 | 0 | 2024-10-18 | 10.2 - 15.0 | 0.0 | In |
Call | 2024-10-18 CALL at $40.0 | 0.915 | 0.0248 | 15 | 2024-10-18 | 5.5 - 9.9 | 3.7 | In |
Call | 2024-10-18 CALL at $45.0 | 0.7313 | 0.0742 | 398 | 2024-10-18 | 2.95 - 3.5 | 1.65 | In |
Call | 2024-10-18 CALL at $50.0 | 0.2504 | 0.0917 | 97 | 2024-10-18 | 0.05 - 0.75 | 0.5 | Out |
Call | 2024-10-18 CALL at $55.0 | 0.0839 | 0.0316 | 170 | 2024-10-18 | 0.0 - 0.2 | 0.18 | Out |
Put | 2024-10-18 PUT at $35.0 | -0.0398 | 0.0099 | 187 | 2024-10-18 | 0.05 - 0.15 | 0.15 | Out |
Put | 2024-10-18 PUT at $45.0 | -0.2568 | 0.0772 | 130 | 2024-10-18 | 0.5 - 0.85 | 0.8 | Out |
Put | 2024-10-18 PUT at $50.0 | -0.8338 | 0.1008 | 115 | 2024-10-18 | 2.5 - 3.4 | 2.75 | In |
Put | 2024-10-18 PUT at $55.0 | -0.9201 | 0.031 | 0 | 2024-10-18 | 5.4 - 10.0 | 0.0 | In |
Put | 2024-10-18 PUT at $60.0 | -0.7038 | 0.0219 | 0 | 2024-10-18 | 10.1 - 15.0 | 0.0 | In |
Put | 2024-10-18 PUT at $65.0 | -0.978 | 0.0071 | 0 | 2024-10-18 | 15.2 - 20.0 | 0.0 | In |
Put | 2024-10-18 PUT at $70.0 | -0.7977 | 0.0157 | 0 | 2024-10-18 | 20.0 - 24.2 | 0.0 | In |
Webster Financial Selling And Marketing Expenses Over Time
Selling And Marketing Expenses |
| Timeline |
Webster Total Stockholder Equity
Total Stockholder Equity |
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Webster Financial Corporate Directors
| Mark Pettie | Independent Director | Profile | |
| Emlen CFA | Director Relations | Profile | |
| Laurence Morse | Independent Director | Profile | |
| William Whiston | Independent Director | Profile |
Additional Tools for Webster Stock Analysis
When running Webster Financial's price analysis, check to measure Webster Financial'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 Webster Financial is operating at the current time. Most of Webster Financial's value examination focuses on studying past and present price action to predict the probability of Webster Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Webster Financial's price. Additionally, you may evaluate how the addition of Webster Financial to your portfolios can decrease your overall portfolio volatility.