NVX251017P00002500 Option on Novonix Ltd ADR

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

Novonix's Option Greeks for the contract ending on 2025-10-17 at a strike price of 2.5 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 Novonix's option greeks, its implied volatility helps estimate the risk of Novonix stock implied by the prices of the options on Novonix's stock.

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

By selling Novonix's put option, the investors signal their bearish sentiment. A short position in a put option written on Novonix will generally make money when the underlying price is above the strike price. Therefore Novonix's put payoff at expiration depends on where the Novonix Stock price is relative to the put option strike price. The breakeven price of 1.25 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 Novonix's price. Finally, at the strike price of 2.5, the payoff chart is constant and positive.

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