Catalent's option chain provides insight into all available option contracts written on Catalent's stock. Investors can see outstanding put and call contracts with pricing information and greeks for a given expiration period. In addition, each of Catalent'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 Catalent option contract.
In The Money vs. Out of Money Option Contracts on Catalent
Analyzing Catalent's in-the-money options over time can help investors to take a profitable long position in Catalent regardless of its overall volatility. This is especially true when Catalent's options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money Catalent's options could be used as guardians of the underlying stock as they move almost dollar for dollar with Catalent's stock while costing only a fraction of its price.
Catalent's latest option contracts expiring on 2024-03-15 are carrying combined implied volatility of 20.71 with a put-to-call open interest ratio of 0.18 over 44 outstanding agreements suggesting investors are buying way more calls than puts on contracts expiring on 2024-03-15. The current put volume is at 23, with calls trading at the volume of 318. This yields a 0.07 put-to-call volume ratio. The Catalent option chain provides detailed quote and price information for the current Catalent option contracts. It shows all of Catalent's listed puts, calls, expiration dates, strike prices, and other pricing information.
Open Interest Against 2024-03-15 Option Contracts
Catalent 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 Catalent's lending market. For example, when Catalent'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 Catalent, he or she must hedge the risk by shorting Catalent stock over its option's life.
The chart above shows Catalent'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. Catalent's open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Catalent's option, there is no secondary market available for investors to trade.
Catalent Maximum Pain Price across 2024-03-15 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 Catalent 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.
Catalent's stock options are financial instruments that give investors the right to buy or sell shares of Catalent common stock at a specified price for a given time period. Generally speaking, an option to purchase or sell Catalent stock makes it part of the underlying stock when the option's price is tied to the movement of the underlying stock. If Catalent's stock price goes up or down, the stock options follow.Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Catalent. Also, note that the market value of any Company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of economic analysis.
Please note that buying 'in-the-money' options on Catalent lessens the impact of time decay, as they carry both intrinsic and time value. So, even if Catalent'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 Catalent 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 Catalent Stock moves the wrong way.Net Income Common Stock is likely to drop to about (302.1 M) in 2024
Catalent In The Money Call Balance
When Catalent's strike price is surpassing the current stock price, the option contract against Catalent stock is said to be in the money. When it comes to buying Catalent'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 Catalent 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.
Catalent Current Options Market Mood
Catalent'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 Catalent 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
Most options investors, including buyers and sellers of Catalent'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. Catalent'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 Catalent'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 Catalent contract
Base on the Rule 16, the options market is currently suggesting that Catalent will have an average daily up or down price movement of about 1.29% per day over the life of the 2024-03-15 option contract. With Catalent trading at USD 57.98, that is roughly USD 0.75. If you think that the market is fully incorporating Catalent's daily price movement you should consider buying Catalent options at the current volatility level of 20.71%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
Purchasing Catalent 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" Catalent calls. Remember, the seller must deliver Catalent stock to the call owner when a call is exercised.
Catalent Option Chain
When Catalent's strike price is surpassing the current stock price, the option contract against Catalent 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.
Catalent Net Income Common Stock Over TimeThe amount of net income (loss) for the period due to common shareholders. Typically differs from Net Income to the parent entity due to the deduction of Preferred Dividends Income Statement Impact.
Catalent Historical Liabilities
While analyzing the current debt level is an essential aspect of forecasting the current year budgeting needs of Catalent, understanding its historical liability is critical in projecting Catalent's future earnings, especially during periods of low and high inflation and deflation. Many analysts look at the trend in assets and liabilities and evaluate how Catalent uses its financing power over time.
Catalent Investors Sentiment
The influence of Catalent's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Catalent. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Catalent's public news can be used to forecast risks associated with an investment in Catalent. The trend in average sentiment can be used to explain how an investor holding Catalent can time the market purely based on public headlines and social activities around Catalent. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Catalent's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Catalent's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Catalent's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Catalent.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Catalent in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Catalent's short interest history, or implied volatility extrapolated from Catalent options trading.
Pair Trading with CatalentOne of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Catalent position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Catalent will appreciate offsetting losses from the drop in the long position's value. When determining whether Catalent is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Catalent Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Catalent Stock. Highlighted below are key reports to facilitate an investment decision about Catalent Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Catalent. Also, note that the market value of any Company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of economic analysis.For more information on how to buy Catalent Stock please use our How to Invest in Catalent guide.You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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When running Catalent's price analysis, check to measure Catalent'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 Catalent is operating at the current time. Most of Catalent's value examination focuses on studying past and present price action to predict the probability of Catalent's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Catalent's price. Additionally, you may evaluate how the addition of Catalent to your portfolios can decrease your overall portfolio volatility.
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Is Catalent's 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 Catalent. If investors know Catalent 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 Catalent 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
Revenue Per Share
Quarterly Revenue Growth
Return On Assets
The market value of Catalent is measured differently than its book value, which is the value of Catalent that is recorded on the company's balance sheet. Investors also form their own opinion of Catalent's value that differs from its market value or its book value, called intrinsic value, which is Catalent'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 Catalent's market value can be influenced by many factors that don't directly affect Catalent'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 Catalent's value and its price as these two are different measures arrived at by different means. Investors typically determine if Catalent is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Catalent'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.