DXC260116P00017000 Option on DXC Technology

An 'In The Money' option is one with a strike price that the current stock price has already surpassed. Some options investors can hedge their DXC Technology positions using in-the-money options. They may also want to buy options with some intrinsic value, not just time value. However, because in-the-money options on DXC Stock have intrinsic value and are priced higher than out-of-the-money options in the same chain, their volatilities are relatively smaller.

Put options written on DXC Technology grant holders of the option the right to sell a specified amount of DXC Technology at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of DXC Stock cannot fall below zero, the put buyer does gain as the price drops. So, purchasing a put option on DXC Technology is like buying insurance aginst DXC Technology's downside shift.

By selling DXC Technology's put option, the investors signal their bearish sentiment. A short position in a put option written on DXC Technology will generally make money when the underlying price is above the strike price. Therefore DXC Technology's put payoff at expiration depends on where the DXC Stock price is relative to the put option strike price. The breakeven price of 17.0 is the critical point that divides the payoff function into two parts. Below the breakeven price, the payoff is dropping and negative (the seller makes a loss). Above the breakeven price, the payoff line is upward sloping as the option payoff increases in proportion to DXC Technology's price. Finally, at the strike price of 17.0, the payoff chart is constant and positive.

DXC Technology's option chain is a display of a range of information that helps investors for ways to trade options on DXC. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for DXC. It also shows strike prices and maturity days for a DXC Technology 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.

Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in DXC Technology Co. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in banks. You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

Is IT Consulting & Other Services 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 DXC Technology. If investors know DXC 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 DXC Technology listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

The market value of DXC Technology is measured differently than its book value, which is the value of DXC that is recorded on the company's balance sheet. Investors also form their own opinion of DXC Technology's value that differs from its market value or its book value, called intrinsic value, which is DXC Technology'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 DXC Technology's market value can be influenced by many factors that don't directly affect DXC Technology'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 DXC Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine if DXC Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, DXC Technology'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.