CIVI251017P00037500 Option on Civitas Resources

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

Civitas Resources' Option Greeks for the contract ending on 2025-10-17 at a strike price of 37.5 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 Civitas Resources' option greeks, its implied volatility helps estimate the risk of Civitas Resources stock implied by the prices of the options on Civitas Resources' stock.

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

By selling Civitas Resources' put option, the investors signal their bearish sentiment. A short position in a put option written on Civitas Resources will generally make money when the underlying price is above the strike price. Therefore Civitas Resources' put payoff at expiration depends on where the Civitas Stock price is relative to the put option strike price. The breakeven price of 27.9 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 Civitas Resources' price. Finally, at the strike price of 37.5, the payoff chart is constant and positive.

Civitas Resources' option chain is a display of a range of information that helps investors for ways to trade options on Civitas. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Civitas. It also shows strike prices and maturity days for a Civitas Resources 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 Trending Equities to better understand how to build diversified portfolios, which includes a position in Civitas Resources. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in real. For more detail on how to invest in Civitas Stock please use our How to Invest in Civitas Resources guide.You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

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