SPR260116C00037000 Option on Spirit Aerosystems

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

Spirit Aerosystems' Option Greeks for the contract ending on 2026-01-16 at a strike price of 37.0 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 Spirit Aerosystems' option greeks, its implied volatility helps estimate the risk of Spirit Aerosystems stock implied by the prices of the options on Spirit Aerosystems' stock.

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

By selling Spirit Aerosystems' put option, the investors signal their bearish sentiment. A short position in a put option written on Spirit Aerosystems will generally make money when the underlying price is above the strike price. Therefore Spirit Aerosystems' put payoff at expiration depends on where the Spirit Stock price is relative to the put option strike price. The breakeven price of 40.1 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 Spirit Aerosystems' price. Finally, at the strike price of 37.0, the payoff chart is constant and positive.

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

One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with Spirit Aerosystems stock to make a market-neutral strategy. Peer analysis of Spirit Aerosystems could also be used in its relative valuation, which is a method of valuing Spirit Aerosystems by comparing valuation metrics with similar companies.

When running Spirit Aerosystems' price analysis, check to measure Spirit Aerosystems' 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 Spirit Aerosystems is operating at the current time. Most of Spirit Aerosystems' value examination focuses on studying past and present price action to predict the probability of Spirit Aerosystems' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Spirit Aerosystems' price. Additionally, you may evaluate how the addition of Spirit Aerosystems to your portfolios can decrease your overall portfolio volatility.