ISRG251219C00525000 Option on Intuitive Surgical

An 'Out of The Money' option on Intuitive has a strike price that Intuitive 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 Intuitive Surgical's 'Out of The Money' options include buying the options if you expect a big move in Intuitive Surgical'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.

Intuitive Surgical's Option Greeks for the contract ending on 2025-12-19 at a strike price of 525.0 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 Intuitive Surgical's option greeks, its implied volatility helps estimate the risk of Intuitive Surgical stock implied by the prices of the options on Intuitive Surgical's stock.

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

By selling Intuitive Surgical's put option, the investors signal their bearish sentiment. A short position in a put option written on Intuitive Surgical will generally make money when the underlying price is above the strike price. Therefore Intuitive Surgical's put payoff at expiration depends on where the Intuitive Stock price is relative to the put option strike price. The breakeven price of 530.5 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 Intuitive Surgical's price. Finally, at the strike price of 525.0, the payoff chart is constant and positive.

Intuitive Surgical's option chain is a display of a range of information that helps investors for ways to trade options on Intuitive. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Intuitive. It also shows strike prices and maturity days for a Intuitive Surgical 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 Intuitive Surgical. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in employment. For more detail on how to invest in Intuitive Stock please use our How to Invest in Intuitive Surgical guide.You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.

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