GVA251219C00090000 Option on Granite Construction

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 Granite Construction 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 Granite Stock have intrinsic value and are priced higher than out-of-the-money options in the same chain, their volatilities are relatively smaller.

Granite Construction's Option Greeks for the contract ending on 2025-12-19 at a strike price of 90.0 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 Granite Construction's option greeks, its implied volatility helps estimate the risk of Granite Construction stock implied by the prices of the options on Granite Construction's stock.

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

By selling Granite Construction's put option, the investors signal their bearish sentiment. A short position in a put option written on Granite Construction will generally make money when the underlying price is above the strike price. Therefore Granite Construction's put payoff at expiration depends on where the Granite Stock price is relative to the put option strike price. The breakeven price of 104.2 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 Granite Construction's price. Finally, at the strike price of 90.0, the payoff chart is constant and positive.

Granite Construction's option chain is a display of a range of information that helps investors for ways to trade options on Granite. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Granite. It also shows strike prices and maturity days for a Granite Construction 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 Granite Construction Incorporated. 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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