PMT241220P00002500 Option on PennyMac Mortgage
| PMT Stock | USD 13.59 0.03 0.22% |
PennyMac Mortgage's latest option contracts expiring on 2024-12-20 are carrying combined implied volatility of 2.04 with a put-to-call open interest ratio of 0.51 over 17 outstanding agreements suggesting investors are buying more calls than puts on contracts expiring on 2024-12-20. The total put volume is at 85.0, with calls trading at the volume of 85.0. This yields a 1.77 put-to-call volume ratio.
Open Interest Against 2024-12-20 Option Contracts
PennyMac Mortgage 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 PennyMac Mortgage's lending market. For example, when PennyMac Mortgage'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 PennyMac Mortgage, he or she must hedge the risk by shorting PennyMac Mortgage stock over its option's life.
2024-12-20
The chart above shows PennyMac Mortgage'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. PennyMac Mortgage's open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for PennyMac Mortgage's option, there is no secondary market available for investors to trade.
PennyMac Mortgage's option chain provides insight into all available option contracts written on PennyMac Mortgage's stock. Investors can see outstanding put and call contracts with pricing information and greeks for a given expiration period. In addition, each of PennyMac Mortgage'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 PennyMac option contract.
In The Money vs. Out of Money Option Contracts on PennyMac Mortgage
Analyzing PennyMac Mortgage's in-the-money options over time can help investors to take a profitable long position in PennyMac Mortgage regardless of its overall volatility. This is especially true when PennyMac Mortgage's options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money PennyMac Mortgage's options could be used as guardians of the underlying stock as they move almost dollar for dollar with PennyMac Mortgage's stock while costing only a fraction of its price.
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in PennyMac Mortgage Investment. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population.
PennyMac Mortgage In The Money Call Balance
When PennyMac Mortgage's strike price is surpassing the current stock price, the option contract against PennyMac Mortgage Investment stock is said to be in the money. When it comes to buying PennyMac Mortgage'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 PennyMac Mortgage Investment 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.
PennyMac Current Options Market Mood
PennyMac Mortgage'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 PennyMac 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 PennyMac Mortgage'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. PennyMac Mortgage'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 PennyMac contract
Base on the Rule 16, the options market is currently suggesting that PennyMac Mortgage Investment will have an average daily up or down price movement of about 0.13% per day over the life of the 2024-12-20 option contract. With PennyMac Mortgage trading at USD 13.59, that is roughly USD 0.0173. If you think that the market is fully incorporating PennyMac Mortgage's daily price movement you should consider buying PennyMac Mortgage Investment options at the current volatility level of 2.04%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
PennyMac |
Purchasing PennyMac Mortgage 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" PennyMac calls. Remember, the seller must deliver PennyMac Mortgage Investment stock to the call owner when a call is exercised.
PennyMac Mortgage Option Chain
When PennyMac Mortgage's strike price is surpassing the current stock price, the option contract against PennyMac Mortgage Investment 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.
PennyMac Mortgage's option chain is a display of a range of information that helps investors for ways to trade options on PennyMac. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for PennyMac. It also shows strike prices and maturity days for a PennyMac Mortgage 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 | Expiration | Current Spread | Last Price | |||
Call | PMT Option Call 20-12-2024 2 | 2 | 2024-12-20 | 10.1 - 12.5 | 11.92 | In |
Call | PMT Option Call 20-12-2024 7 | 26 | 2024-12-20 | 6.0 - 6.3 | 5.7 | In |
Call | PMT Option Call 20-12-2024 10 | 14 | 2024-12-20 | 3.5 - 3.8 | 3.7 | In |
Call | PMT Option Call 20-12-2024 12 | 75 | 2024-12-20 | 1.0 - 1.2 | 0.75 | In |
Call | PMT Option Call 20-12-2024 15 | 3500 | 2024-12-20 | 0.0 - 0.05 | 0.03 | Out |
Call | PMT Option Call 20-12-2024 17 | 347 | 2024-12-20 | 0.0 - 0.05 | 0.03 | Out |
Call | PMT Option Call 20-12-2024 20 | 78 | 2024-12-20 | 0.0 - 0.05 | 0.05 | Out |
Call | PMT Option Call 20-12-2024 30 | 0 | 2024-12-20 | 0.0 - 0.75 | 0.05 | |
Put | PMT Option Put 20-12-2024 2 | 101 | 2024-12-20 | 0.0 - 3.1 | 0.03 | Out |
Put | PMT Option Put 20-12-2024 5 | 313 | 2024-12-20 | 0.0 - 0.05 | 0.04 | Out |
Put | PMT Option Put 20-12-2024 7 | 300 | 2024-12-20 | 0.0 - 0.75 | 0.1 | Out |
Put | PMT Option Put 20-12-2024 10 | 164 | 2024-12-20 | 0.0 - 0.6 | 0.11 | Out |
Put | PMT Option Put 20-12-2024 12 | 1155 | 2024-12-20 | 0.0 - 0.1 | 0.03 | Out |
Put | PMT Option Put 20-12-2024 15 | 9 | 2024-12-20 | 1.4 - 1.5 | 1.56 | In |
Put | PMT Option Put 20-12-2024 17 | 0 | 2024-12-20 | 3.9 - 4.2 | 3.5 | In |
Put | PMT Option Put 20-12-2024 20 | 5 | 2024-12-20 | 6.4 - 7.0 | 6.8 | In |
Put | PMT Option Put 20-12-2024 22 | 1 | 2024-12-20 | 8.7 - 9.7 | 9.31 | In |
PennyMac Total Stockholder Equity
Total Stockholder Equity |
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PennyMac Mortgage Corporate Directors
| Daniel Perotti | Chief Financial Officer, Senior Managing Director | Profile | |
| Andrew Chang | Chief Financial Officer, Senior Managing Director | Profile | |
| Anne McCallion | Senior Managing Director, Chief Enterprise Operations Officer | Profile | |
| Derek Stark | Senior Managing Director, Chief Legal Officer, Company Secretary | Profile |
Additional Tools for PennyMac Stock Analysis
When running PennyMac Mortgage's price analysis, check to measure PennyMac Mortgage'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 PennyMac Mortgage is operating at the current time. Most of PennyMac Mortgage's value examination focuses on studying past and present price action to predict the probability of PennyMac Mortgage's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move PennyMac Mortgage's price. Additionally, you may evaluate how the addition of PennyMac Mortgage to your portfolios can decrease your overall portfolio volatility.