CVS251017P00047500 Option on CVS Health Corp

An 'Out of The Money' option on CVS has a strike price that CVS Stock has yet to reach, meaning the option has no intrinsic value. 'Out of The Money' options are usually less costly than 'In The Money' options, making them more desirable to traders with smaller amounts of capital. Some of the uses for CVS Health's 'Out of The Money' options include buying the options if you expect a big move in CVS Health's stock. Since 'Out of The Money' options have a lower up-front cost (i.e., no intrinsic value) than 'In The Money' options, buying it is a reasonable choice.

CVS Health's Option Greeks for the contract ending on 2025-10-17 at a strike price of 47.5 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 CVS Health's option greeks, its implied volatility helps estimate the risk of CVS Health stock implied by the prices of the options on CVS Health's stock.

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

By selling CVS Health's put option, the investors signal their bearish sentiment. A short position in a put option written on CVS Health will generally make money when the underlying price is above the strike price. Therefore CVS Health's put payoff at expiration depends on where the CVS Stock price is relative to the put option strike price. The breakeven price of 47.11 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 CVS Health's price. Finally, at the strike price of 47.5, the payoff chart is constant and positive.

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