NMM260116C00027500 Option on Navios Maritime Partners

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

Navios Maritime's Option Greeks for the contract ending on 2026-01-16 at a strike price of 27.5 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 Navios Maritime's option greeks, its implied volatility helps estimate the risk of Navios Maritime stock implied by the prices of the options on Navios Maritime's stock.

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

By selling Navios Maritime's put option, the investors signal their bearish sentiment. A short position in a put option written on Navios Maritime will generally make money when the underlying price is above the strike price. Therefore Navios Maritime's put payoff at expiration depends on where the Navios Stock price is relative to the put option strike price. The breakeven price of 56.15 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 Navios Maritime's price. Finally, at the strike price of 27.5, the payoff chart is constant and positive.

Navios Maritime's option chain is a display of a range of information that helps investors for ways to trade options on Navios. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Navios. It also shows strike prices and maturity days for a Navios Maritime 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 Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Navios Maritime Partners. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in industry. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.

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