MPLX260116P00055000 Option on MPLX LP

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

By selling MPLX LP's put option, the investors signal their bearish sentiment. A short position in a put option written on MPLX LP will generally make money when the underlying price is above the strike price. Therefore MPLX LP's put payoff at expiration depends on where the MPLX Stock price is relative to the put option strike price. The breakeven price of 55.0 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 MPLX LP's price. Finally, at the strike price of 55.0, the payoff chart is constant and positive.

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

When running MPLX LP's price analysis, check to measure MPLX LP's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy MPLX LP is operating at the current time. Most of MPLX LP's value examination focuses on studying past and present price action to predict the probability of MPLX LP's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move MPLX LP's price. Additionally, you may evaluate how the addition of MPLX LP to your portfolios can decrease your overall portfolio volatility.