ARLP250919P00027500 Option on Alliance Resource

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

Alliance Resource's Option Greeks for the contract ending on 2025-09-19 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 Alliance Resource's option greeks, its implied volatility helps estimate the risk of Alliance Resource stock implied by the prices of the options on Alliance Resource's stock.

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

By selling Alliance Resource's put option, the investors signal their bearish sentiment. A short position in a put option written on Alliance Resource will generally make money when the underlying price is above the strike price. Therefore Alliance Resource's put payoff at expiration depends on where the Alliance Stock price is relative to the put option strike price. The breakeven price of 24.77 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 Alliance Resource's price. Finally, at the strike price of 27.5, the payoff chart is constant and positive.

Alliance Resource's option chain is a display of a range of information that helps investors for ways to trade options on Alliance. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Alliance. It also shows strike prices and maturity days for a Alliance Resource 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 Alliance Resource's price analysis, check to measure Alliance Resource'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 Alliance Resource is operating at the current time. Most of Alliance Resource's value examination focuses on studying past and present price action to predict the probability of Alliance Resource's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Alliance Resource's price. Additionally, you may evaluate how the addition of Alliance Resource to your portfolios can decrease your overall portfolio volatility.