Chembio Diagnostics Stock Options

CEMI
 Stock
  

USD 0.39  0.02  5.41%   

Chembio Diagnostics' option chain provides insight into all available option contracts written on Chembio Diagnostics' stock. Investors can see outstanding put and call contracts with pricing information and greeks for a given expiration period. In addition, each of Chembio Diagnostics' 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 Chembio option contract. View S&P 500 options
  
Purchasing Chembio Diagnostics 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" Chembio calls. Remember, the seller must deliver Chembio Diagnostics stock to the call owner when a call is exercised.

In The Money vs. Out of Money Option Contracts on Chembio Diagnostics

Analyzing Chembio Diagnostics' in-the-money options over time can help investors to take a profitable long position in Chembio Diagnostics regardless of its overall volatility. This is especially true when Chembio Diagnostics' options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money Chembio Diagnostics' options could be used as guardians of the underlying stock as they move almost dollar for dollar with Chembio Diagnostics' stock while costing only a fraction of its price.
There are currently no option contracts written on Chembio Diagnostics. The Chembio Diagnostics option chain provides detailed quote and price information for the current Chembio Diagnostics option contracts. It shows all of Chembio Diagnostics' listed puts, calls, expiration dates, strike prices, and other pricing information.

Open Interest Against 2022-10-21 Option Contracts

Chembio Diagnostics 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 Chembio Diagnostics' lending market. For example, when Chembio Diagnostics' 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 Chembio Diagnostics, he or she must hedge the risk by shorting Chembio Diagnostics stock over its option's life.
No Open Interest
The chart above shows Chembio Diagnostics' 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. Chembio Diagnostics' open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Chembio Diagnostics' option, there is no secondary market available for investors to trade.

Chembio Diagnostics 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 Chembio Diagnostics 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.
No Max Pain Price
Chembio Diagnostics' stock options are financial instruments that give investors the right to buy or sell shares of Chembio Diagnostics common stock at a specified price for a given time period. Generally speaking, an option to purchase or sell Chembio stock makes it part of the underlying stock when the option's price is tied to the movement of the underlying stock. If Chembio Diagnostics' stock price goes up or down, the stock options follow.
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Please note that buying 'in-the-money' options on Chembio Diagnostics lessens the impact of time decay, as they carry both intrinsic and time value. So, even if Chembio Diagnostics' 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 Chembio Diagnostics 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 Chembio Stock moves the wrong way.

Chembio Current Options Market Mood

Chembio Diagnostics' 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 Chembio 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 Chembio Diagnostics' calls and puts, are not very successful. It is estimated that an average options trader loses somewhere between 80% to 90% of the time. Chembio Diagnostics' 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 Chembio Diagnostics' 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 Chembio contract

Base on the Rule 16, the options market is currently suggesting that Chembio Diagnostics will have an average daily up or down price movement of about 0.0% per day over the life of the 2022-10-21 option contract. With Chembio Diagnostics trading at $0.39, that is roughly $0.0. If you think that the market is fully incorporating Chembio Diagnostics' daily price movement you should consider buying Chembio Diagnostics options at the current volatility level of 0.0%. But if you have an opposite viewpoint you should avoid it and even consider selling them.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Chembio Diagnostics without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Pair Trading with Chembio Diagnostics

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 Chembio Diagnostics 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 Chembio Diagnostics will appreciate offsetting losses from the drop in the long position's value.

Moving together with Chembio Diagnostics

+0.7HDHome Depot TrendingPairCorr
The ability to find closely correlated positions to Chembio Diagnostics could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Chembio Diagnostics 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 Chembio Diagnostics - 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 Chembio Diagnostics to buy it.
The correlation of Chembio Diagnostics 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 Chembio Diagnostics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Chembio Diagnostics 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 Chembio Diagnostics 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
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Is Chembio Diagnostics' 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 Chembio Diagnostics. If investors know Chembio 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 Chembio Diagnostics 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 Chembio Diagnostics is measured differently than its book value, which is the value of Chembio that is recorded on the company's balance sheet. Investors also form their own opinion of Chembio Diagnostics' value that differs from its market value or its book value, called intrinsic value, which is Chembio Diagnostics' 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 Chembio Diagnostics' market value can be influenced by many factors that don't directly affect Chembio Diagnostics' 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 Chembio Diagnostics' value and its price as these two are different measures arrived at by different means. Investors typically determine Chembio Diagnostics value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Chembio Diagnostics' 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.