PHG250718P00019000 Option on Koninklijke Philips

An 'Out of The Money' option on Koninklijke has a strike price that Koninklijke 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 Koninklijke Philips' 'Out of The Money' options include buying the options if you expect a big move in Koninklijke Philips' 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.

Koninklijke Philips' Option Greeks for the contract ending on 2025-07-18 at a strike price of 19.0 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 Koninklijke Philips' option greeks, its implied volatility helps estimate the risk of Koninklijke Philips stock implied by the prices of the options on Koninklijke Philips' stock.

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

By selling Koninklijke Philips' put option, the investors signal their bearish sentiment. A short position in a put option written on Koninklijke Philips will generally make money when the underlying price is above the strike price. Therefore Koninklijke Philips' put payoff at expiration depends on where the Koninklijke Stock price is relative to the put option strike price. The breakeven price of 18.67 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 Koninklijke Philips' price. Finally, at the strike price of 19.0, the payoff chart is constant and positive.

Koninklijke Philips' option chain is a display of a range of information that helps investors for ways to trade options on Koninklijke. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Koninklijke. It also shows strike prices and maturity days for a Koninklijke Philips 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 Your Equity Center to better understand how to build diversified portfolios, which includes a position in Koninklijke Philips NV. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in rate. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

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