RAIL250321P00002500 Option on Freightcar America
| RAIL Stock | USD 9.80 0.03 0.31% |
Freightcar America's latest option contracts expiring on 2024-12-20 are carrying combined implied volatility of 1.54 with a put-to-call open interest ratio of 0.41 over 16 outstanding agreements suggesting investors are buying more calls than puts on contracts expiring on 2024-12-20. The total put volume is at 81.0, with calls trading at the volume of 81.0. This yields a 3.24 put-to-call volume ratio.
Open Interest Against 2024-12-20 Option Contracts
2024-12-20
The chart above shows Freightcar America'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. Freightcar America's open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Freightcar America's option, there is no secondary market available for investors to trade.
Freightcar America Maximum Pain Price across 2024-12-20 Option Contracts
Freightcar America's 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.
Freightcar America's option chain provides insight into all available option contracts written on Freightcar America's stock. Investors can see outstanding put and call contracts with pricing information and greeks for a given expiration period. In addition, each of Freightcar America'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 Freightcar option contract.
In The Money vs. Out of Money Option Contracts on Freightcar America
Analyzing Freightcar America's in-the-money options over time can help investors to take a profitable long position in Freightcar America regardless of its overall volatility. This is especially true when Freightcar America's options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money Freightcar America's options could be used as guardians of the underlying stock as they move almost dollar for dollar with Freightcar America'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 Freightcar America. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product.
Freightcar America In The Money Call Balance
When Freightcar America's strike price is surpassing the current stock price, the option contract against Freightcar America stock is said to be in the money. When it comes to buying Freightcar America'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 Freightcar America 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.
Freightcar Current Options Market Mood
Freightcar America'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 Freightcar 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
Unfortunately, most Freightcar America's options investors are not very successful. Freightcar America'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 Freightcar contract
Base on the Rule 16, the options market is currently suggesting that Freightcar America will have an average daily up or down price movement of about 0.0963% per day over the life of the 2024-12-20 option contract. With Freightcar America trading at USD 9.8, that is roughly USD 0.009433. If you think that the market is fully incorporating Freightcar America's daily price movement you should consider buying Freightcar America options at the current volatility level of 1.54%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
Freightcar |
Purchasing Freightcar America 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" Freightcar calls. Remember, the seller must deliver Freightcar America stock to the call owner when a call is exercised.
Freightcar America Option Chain
When Freightcar America's strike price is surpassing the current stock price, the option contract against Freightcar America 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.
Freightcar America's option chain is a display of a range of information that helps investors for ways to trade options on Freightcar. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Freightcar. It also shows strike prices and maturity days for a Freightcar America 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 | RAIL Option Call 20-12-2024 2 | 313 | 2024-12-20 | 10.1 - 10.7 | 7.1 | In |
Call | RAIL Option Call 20-12-2024 5 | 0 | 2024-12-20 | 4.7 - 5.1 | 5.45 | In |
Call | RAIL Option Call 20-12-2024 7 | 0 | 2024-12-20 | 2.25 - 2.8 | 3.1 | In |
Call | RAIL Option Call 20-12-2024 10 | 204 | 2024-12-20 | 0.65 - 0.8 | 0.85 | Out |
Call | RAIL Option Call 20-12-2024 12 | 0 | 2024-12-20 | 0.0 - 0.3 | 0.26 | |
Call | RAIL Option Call 20-12-2024 15 | 0 | 2024-12-20 | 0.0 - 0.2 | 0.15 | |
Call | RAIL Option Call 20-12-2024 17 | 42 | 2024-12-20 | 0.0 - 0.3 | 0.3 | Out |
Call | RAIL Option Call 20-12-2024 20 | 0 | 2024-12-20 | 0.0 - 0.75 | 0.02 | |
Put | RAIL Option Put 20-12-2024 2 | 50 | 2024-12-20 | 0.0 - 0.2 | 0.15 | Out |
Put | RAIL Option Put 20-12-2024 5 | 0 | 2024-12-20 | 0.0 - 0.35 | 0.05 | |
Put | RAIL Option Put 20-12-2024 7 | 0 | 2024-12-20 | 0.05 - 0.2 | 0.15 | |
Put | RAIL Option Put 20-12-2024 10 | 0 | 2024-12-20 | 0.75 - 1.75 | 1.01 | In |
Put | RAIL Option Put 20-12-2024 12 | 174 | 2024-12-20 | 2.7 - 4.4 | 2.95 | In |
Put | RAIL Option Put 20-12-2024 15 | 0 | 2024-12-20 | 5.0 - 5.5 | 5.7 | In |
Put | RAIL Option Put 20-12-2024 17 | 5 | 2024-12-20 | 7.4 - 7.9 | 7.21 | In |
Put | RAIL Option Put 20-12-2024 20 | 0 | 2024-12-20 | 9.9 - 10.4 | 4.8 | In |
Freightcar America Market Cap Over Time
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| Timeline |
Freightcar Total Stockholder Equity
Total Stockholder Equity |
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Freightcar America Corporate Management
| Steve Cianci | Senior Marketing | Profile | |
| Nicholas Randall | Chief Officer | Profile | |
| Juan Sierra | Corporate Officer | Profile | |
| Celia JD | General Resources | Profile | |
| James Meyer | Executive Board | Profile | |
| Jesus Benavides | VP Director | Profile |
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Freightcar America. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product. For more information on how to buy Freightcar Stock please use our How to buy in Freightcar Stock guide.You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Is Construction Machinery & Heavy Transportation Equipment space 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 Freightcar America. If investors know Freightcar 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 Freightcar America listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (4.31) | Revenue Per Share 16.728 | Quarterly Revenue Growth 0.664 | Return On Assets 0.0577 | Return On Equity (0.09) |
The market value of Freightcar America is measured differently than its book value, which is the value of Freightcar that is recorded on the company's balance sheet. Investors also form their own opinion of Freightcar America's value that differs from its market value or its book value, called intrinsic value, which is Freightcar America'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 Freightcar America's market value can be influenced by many factors that don't directly affect Freightcar America'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 Freightcar America's value and its price as these two are different measures arrived at by different means. Investors typically determine if Freightcar America is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Freightcar America'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.