TK251017C00007500 Option on Teekay

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

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

By selling Teekay's put option, the investors signal their bearish sentiment. A short position in a put option written on Teekay will generally make money when the underlying price is above the strike price. Therefore Teekay's put payoff at expiration depends on where the Teekay Stock price is relative to the put option strike price. The breakeven price of 7.5 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 Teekay's price. Finally, at the strike price of 7.5, the payoff chart is constant and positive.

Teekay's option chain is a display of a range of information that helps investors for ways to trade options on Teekay. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Teekay. It also shows strike prices and maturity days for a Teekay 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 World Market Map to better understand how to build diversified portfolios, which includes a position in Teekay. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in industry. For more information on how to buy Teekay Stock please use our How to buy in Teekay Stock guide.You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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