TWO241220P00015000 Option on Two Harbors Investments
| TWO Stock | USD 11.75 0.09 0.77% |
Two Harbors' latest option contracts expiring on 2024-12-20 are carrying combined implied volatility of 0.87 with a put-to-call open interest ratio of 0.53 over 20 outstanding agreements suggesting investors are buying more calls than puts on contracts expiring on 2024-12-20. The total put volume is at 33.0, with calls trading at the volume of 33.0. This yields a 0.26 put-to-call volume ratio.
Open Interest Against 2024-12-20 Option Contracts
2024-12-20
The chart above shows Two Harbors' 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. Two Harbors' open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Two Harbors' option, there is no secondary market available for investors to trade.
Two Harbors' option chain provides insight into all available option contracts written on Two Harbors' stock. Investors can see outstanding put and call contracts with pricing information and greeks for a given expiration period. In addition, each of Two Harbors' 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 Two option contract.
In The Money vs. Out of Money Option Contracts on Two Harbors
Analyzing Two Harbors' in-the-money options over time can help investors to take a profitable long position in Two Harbors regardless of its overall volatility. This is especially true when Two Harbors' options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money Two Harbors' options could be used as guardians of the underlying stock as they move almost dollar for dollar with Two Harbors' stock while costing only a fraction of its price.
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Two Harbors Investments. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in housing.
Please note that buying 'in-the-money' options on Two Harbors lessens the impact of time decay, as they carry both intrinsic and time value. So, even if Two Harbors' 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 Two Harbors 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 Two Stock moves the wrong way.
Two Harbors Investments In The Money Call Balance
When Two Harbors' strike price is surpassing the current stock price, the option contract against Two Harbors Investments stock is said to be in the money. When it comes to buying Two Harbors' 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 Two Harbors Investments 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.
Two Current Options Market Mood
Two Harbors' 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 Two 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 Two Harbors' calls and puts, are not very successful. It is estimated that an average options trader loses somewhere between 80% to 90% of the time. Two Harbors' 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 Two contract
Base on the Rule 16, the options market is currently suggesting that Two Harbors Investments will have an average daily up or down price movement of about 0.0544% per day over the life of the 2024-12-20 option contract. With Two Harbors trading at USD 11.75, that is roughly USD 0.006389. If you think that the market is fully incorporating Two Harbors' daily price movement you should consider buying Two Harbors Investments options at the current volatility level of 0.87%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
Two |
Purchasing Two Harbors 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" Two calls. Remember, the seller must deliver Two Harbors Investments stock to the call owner when a call is exercised.
Two Harbors Option Chain
When Two Harbors' strike price is surpassing the current stock price, the option contract against Two Harbors Investments 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.
Two Harbors' option chain is a display of a range of information that helps investors for ways to trade options on Two. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Two. It also shows strike prices and maturity days for a Two Harbors 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 | TWO Option Call 20-12-2024 3 | 0 | 2024-12-20 | 0.0 - 0.0 | 10.8 | In |
Call | TWO Option Call 20-12-2024 4 | 0 | 2024-12-20 | 8.7 - 10.0 | 8.82 | In |
Call | TWO Option Call 20-12-2024 10 | 0 | 2024-12-20 | 1.7 - 4.3 | 3.3 | In |
Call | TWO Option Call 20-12-2024 11 | 570 | 2024-12-20 | 0.0 - 0.0 | 0.78 | In |
Call | TWO Option Call 20-12-2024 12 | 1438 | 2024-12-20 | 0.0 - 0.0 | 0.14 | Out |
Call | TWO Option Call 20-12-2024 13 | 231 | 2024-12-20 | 0.0 - 0.0 | 0.03 | Out |
Call | TWO Option Call 20-12-2024 14 | 786 | 2024-12-20 | 0.0 - 0.0 | 0.03 | Out |
Call | TWO Option Call 20-12-2024 15 | 467 | 2024-12-20 | 0.0 - 0.0 | 0.03 | Out |
Call | TWO Option Call 20-12-2024 16 | 25 | 2024-12-20 | 0.0 - 0.05 | 0.05 | Out |
Put | TWO Option Put 20-12-2024 8 | 20 | 2024-12-20 | 0.0 - 0.75 | 0.1 | Out |
Put | TWO Option Put 20-12-2024 9 | 38 | 2024-12-20 | 0.0 - 0.15 | 0.2 | Out |
Put | TWO Option Put 20-12-2024 10 | 1176 | 2024-12-20 | 0.0 - 0.0 | 0.05 | Out |
Put | TWO Option Put 20-12-2024 11 | 90 | 2024-12-20 | 0.0 - 0.0 | 0.07 | Out |
Put | TWO Option Put 20-12-2024 12 | 497 | 2024-12-20 | 0.0 - 0.0 | 0.46 | In |
Put | TWO Option Put 20-12-2024 13 | 5 | 2024-12-20 | 0.0 - 0.0 | 1.45 | In |
Put | TWO Option Put 20-12-2024 14 | 9 | 2024-12-20 | 0.0 - 0.0 | 2.45 | In |
Put | TWO Option Put 20-12-2024 15 | 11 | 2024-12-20 | 2.1 - 3.4 | 1.98 | In |
Put | TWO Option Put 20-12-2024 16 | 10 | 2024-12-20 | 4.3 - 4.7 | 2.9 | In |
Put | TWO Option Put 20-12-2024 17 | 0 | 2024-12-20 | 5.3 - 5.7 | 4.6 | In |
Put | TWO Option Put 20-12-2024 20 | 0 | 2024-12-20 | 0.0 - 0.0 | 6.43 | In |
Two Harbors Market Cap Over Time
Market Cap |
| Timeline |
Two Total Stockholder Equity
Total Stockholder Equity |
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Two Harbors Corporate Directors
| James Bender | Independent Director | Profile | |
| Edward Abraham | Independent Director | Profile | |
| Karen Hammond | Independent Director | Profile | |
| Hope Woodhouse | Independent Director | Profile |
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Two Harbors Investments. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in housing. You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Is Mortgage Real Estate Investment Trusts (REITs) 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 Two Harbors. If investors know Two 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 Two Harbors 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 (0.76) | Dividend Share 1.8 | Earnings Share (4.80) | Revenue Per Share 1.171 | Quarterly Revenue Growth (0.43) |
The market value of Two Harbors Investments is measured differently than its book value, which is the value of Two that is recorded on the company's balance sheet. Investors also form their own opinion of Two Harbors' value that differs from its market value or its book value, called intrinsic value, which is Two Harbors' 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 Two Harbors' market value can be influenced by many factors that don't directly affect Two Harbors' 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 Two Harbors' value and its price as these two are different measures arrived at by different means. Investors typically determine if Two Harbors is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Two Harbors' 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.