Alignment Healthcare Stock Options

ALHC
 Stock
  

USD 11.89  0.17  1.41%   

Alignment Healthcare's option chain provides insight into all available option contracts written on Alignment Healthcare's stock. Investors can see outstanding put and call contracts with pricing information and greeks for a given expiration period. In addition, each of Alignment Healthcare's stock options below provides a detailed picture of the payoff. Comparing vital and dynamic information of various option contracts across diverse expiration periods will help you make an educated decision on your market timing strategies around investing in a given Alignment option contract. View S&P 500 options
  
Purchasing Alignment Healthcare options can give investors a meaningful hedge against losses and, therefore, could be used conservatively to decrease the volatility of your portfolio. However, many options could also amount to little more than gambling, significantly enhancing your overall portfolio risk. One simple example of these aggressive strategies is the sale of "uncovered" Alignment calls. Remember, the seller must deliver Alignment Healthcare stock to the call owner when a call is exercised.

In The Money vs. Out of Money Option Contracts on Alignment Healthcare

Analyzing Alignment Healthcare's in-the-money options over time can help investors to take a profitable long position in Alignment Healthcare regardless of its overall volatility. This is especially true when Alignment Healthcare's options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money Alignment Healthcare's options could be used as guardians of the underlying stock as they move almost dollar for dollar with Alignment Healthcare's stock while costing only a fraction of its price.
Alignment Healthcare's latest option contracts expiring on 2022-10-21 are carrying combined implied volatility of 68.85 with a put-to-call open interest ratio of 0.62 over 22 outstanding agreements suggesting investors are buying more calls than puts on contracts expiring on 2022-10-21. The current put volume is at 14, with calls trading at the volume of 3. This yields a 4.67 put-to-call volume ratio. The Alignment Healthcare option chain provides detailed quote and price information for the current Alignment Healthcare option contracts. It shows all of Alignment Healthcare's listed puts, calls, expiration dates, strike prices, and other pricing information.

Open Interest Against 2022-10-21 Option Contracts

Alignment Healthcare option prices can potentially be used to forecast stock returns because most option chains provide information not only about the current prices but also about the future conditions in Alignment Healthcare's lending market. For example, when Alignment Healthcare's puts are not actively trading or completely missing in the marketplace, investors can use it to internalize expected shorting costs. So if an investor is writing a put option on Alignment Healthcare, he or she must hedge the risk by shorting Alignment Healthcare stock over its option's life.
The chart above shows Alignment Healthcare's distribution of open interest by maturity on contracts that have not yet been settled. The area between the two highest points is the projection of the price at expiration. Alignment Healthcare's open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Alignment Healthcare's option, there is no secondary market available for investors to trade.

Alignment Healthcare Maximum Pain Price across 2022-10-21 Option Contracts

Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of particular securities such as Alignment Healthcare close to expiration to expire worthless. According to most research, approximately 10% to 15% of all stock options are exercised, while about 35% expire worthlessly, with roughly 50% traded out before the expiration date. So, Max pain occurs when market makers reach a net positive position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthless.
Alignment Healthcare's stock options are financial instruments that give investors the right to buy or sell shares of Alignment Healthcare common stock at a specified price for a given time period. Generally speaking, an option to purchase or sell Alignment stock makes it part of the underlying stock when the option's price is tied to the movement of the underlying stock. If Alignment Healthcare's stock price goes up or down, the stock options follow.
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Please note that buying 'in-the-money' options on Alignment Healthcare lessens the impact of time decay, as they carry both intrinsic and time value. So, even if Alignment Healthcare's value remains static through the expiration date, the investor can sell to close an 'in-the-money' option to avoid a potential loss. However, in-the-money Alignment Healthcare contracts are usually more expensive to enter than their out-of-the-money counterparts. So keep in mind that while the payoffs on an in-the-money trade can be high, the investors could ultimately experience a more consequential loss if Alignment Stock moves the wrong way.

Alignment Healthcare In The Money Call Balance

When Alignment Healthcare's strike price is surpassing the current stock price, the option contract against Alignment Healthcare stock is said to be in the money. When it comes to buying Alignment Healthcare's options that are 'In the Money' or 'Out of the Money', the choice depends on your outlook for the underlying security, financial situation, and what you are trying to achieve.
While 'out-of-the-money' option contracts written on Alignment Healthcare are typically viewed as the more aggressive, there are potential upsides to purchasing these types of options contracts. For one, the cost to buy an 'Out of the Money' option is lower than the cost to buy an 'In the Money' option. This cost-benefit is due to the fact that at the time of the purchase, 'Out of the Money' contracts have no intrinsic value. So, while the potential for a 100% loss is more significant, the cost and risk to enter the trade are lower.

Alignment Current Options Market Mood

Alignment Healthcare's open interest and total value indicators provide investors with the necessary information to digest the overall options buildup for its expiring contracts. In addition, it helps Alignment Stock's traders understand whether a recent fall or rise in the market is unreasonable and if the time has come to take contrarian positions. These ratios are calculated based on options trading volumes and current open interest.

Put-to-Call Open Interest

Put-to-Call Volume

Most options investors, including buyers and sellers of Alignment Healthcare's calls and puts, are not very successful. It is estimated that an average options trader loses somewhere between 80% to 90% of the time. Alignment Healthcare's option open interest and volume spread between outstanding puts and calls are regarded by many investors as reliable indicators of the overall future market direction. Using current Alignment Healthcare's option volume and open interest to make an investment decision is considered a contrarian-sentiment measure that can be utilized in many timing strategies in both derivative and spot marketplace.

Rule 16 of the current Alignment contract

Base on the Rule 16, the options market is currently suggesting that Alignment Healthcare will have an average daily up or down price movement of about 4.3% per day over the life of the 2022-10-21 option contract. With Alignment Healthcare trading at $11.89, that is roughly $0.51. If you think that the market is fully incorporating Alignment Healthcare's daily price movement you should consider buying Alignment Healthcare options at the current volatility level of 68.85%. But if you have an opposite viewpoint you should avoid it and even consider selling them.

Alignment Healthcare Option Chain

When Alignment Healthcare's strike price is surpassing the current stock price, the option contract against Alignment Healthcare stock is said to be in the money. When it comes to buying options that are ITM or OTM, the choice depends on your outlook for the underlying security, financial situation, and what you are trying to achieve.
2022-10-212022-11-182023-02-172023-05-19
Alignment Healthcare's option chain is a display of a range of information that helps investors for ways to trade options on Alignment. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Alignment. It also shows strike prices and maturity days for a Alignment Healthcare 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.
DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Call
2022-10-21 CALL at $2.50.98230.003802022-10-218.3 - 10.70.0In
Call
2022-10-21 CALL at $5.00.97950.008602022-10-215.7 - 8.20.0In
Call
2022-10-21 CALL at $7.50.94650.028702022-10-213.3 - 5.70.0In
Call
2022-10-21 CALL at $10.00.81020.099712022-10-212.15 - 2.33.02In
Call
2022-10-21 CALL at $12.50.44310.1669192022-10-210.65 - 0.751.49Out
Call
2022-10-21 CALL at $15.00.15170.0969442022-10-210.1 - 0.250.45Out
 Put
2022-10-21 PUT at $10.0-0.18550.1009522022-10-210.25 - 0.350.3Out
 Put
2022-10-21 PUT at $12.5-0.56020.169832022-10-211.2 - 1.351.2In
 Put
2022-10-21 PUT at $15.0-0.88960.090512022-10-213.1 - 3.31.55In
 Put
2022-10-21 PUT at $17.5-0.66430.055702022-10-214.2 - 6.70.0In
 Put
2022-10-21 PUT at $20.0-0.64870.044202022-10-216.3 - 9.50.0In
 Put
2022-10-21 PUT at $22.5-0.96150.021502022-10-218.8 - 12.50.0In
 Put
2022-10-21 PUT at $25.0-0.96490.017602022-10-2111.4 - 14.90.0In
 Put
2022-10-21 PUT at $30.0-0.96830.013602022-10-2116.3 - 20.00.0In

Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Alignment Healthcare in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Alignment Healthcare's short interest history, or implied volatility extrapolated from Alignment Healthcare options trading.

Pair Trading with Alignment Healthcare

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Alignment Healthcare position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Alignment Healthcare will appreciate offsetting losses from the drop in the long position's value.

Moving together with Alignment Healthcare

+0.67UNHUnitedhealth Group TrendingPairCorr
+0.69FDSFactset Research Systems Fiscal Year End 27th of September 2022 PairCorr
+0.72WFCWells Fargo Fiscal Year End 13th of January 2023 PairCorr
The ability to find closely correlated positions to Alignment Healthcare could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Alignment Healthcare when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Alignment Healthcare - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Alignment Healthcare to buy it.
The correlation of Alignment Healthcare is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Alignment Healthcare moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Alignment Healthcare moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Alignment Healthcare can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Please continue to Trending Equities. Note that the Alignment Healthcare information on this page should be used as a complementary analysis to other Alignment Healthcare's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Global Correlations module to find global opportunities by holding instruments from different markets.

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