GEL251219P00012500 Option on Genesis Energy LP

An 'Out of The Money' option on Genesis has a strike price that Genesis Stock has yet to reach, meaning the option has no intrinsic value. 'Out of The Money' options are usually less costly than 'In The Money' options, making them more desirable to traders with smaller amounts of capital. Some of the uses for Genesis Energy's 'Out of The Money' options include buying the options if you expect a big move in Genesis Energy's stock. Since 'Out of The Money' options have a lower up-front cost (i.e., no intrinsic value) than 'In The Money' options, buying it is a reasonable choice.

Genesis Energy's Option Greeks for the contract ending on 2025-12-19 at a strike price of 12.5 measures the various factors that affect its cost and calculated using a theoretical options pricing model. It helps investors make more informed decisions about whether to trade this option contract or when to trade it. In addition to Genesis Energy's option greeks, its implied volatility helps estimate the risk of Genesis Energy stock implied by the prices of the options on Genesis Energy's stock.

Put options written on Genesis Energy grant holders of the option the right to sell a specified amount of Genesis Energy 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 Genesis Stock cannot fall below zero, the put buyer does gain as the price drops. So, purchasing a put option on Genesis Energy is like buying insurance aginst Genesis Energy's downside shift.

By selling Genesis Energy's put option, the investors signal their bearish sentiment. A short position in a put option written on Genesis Energy will generally make money when the underlying price is above the strike price. Therefore Genesis Energy's put payoff at expiration depends on where the Genesis Stock price is relative to the put option strike price. The breakeven price of 12.35 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 Genesis Energy's price. Finally, at the strike price of 12.5, the payoff chart is constant and positive.

Genesis Energy's option chain is a display of a range of information that helps investors for ways to trade options on Genesis. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Genesis. It also shows strike prices and maturity days for a Genesis Energy 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 Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Genesis Energy LP. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in world development indicators. You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.

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