Cognyte Software Stock Options

CGNT
 Stock
  

USD 4.04  0.21  4.94%   

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

In The Money vs. Out of Money Option Contracts on Cognyte Software

Analyzing Cognyte Software's in-the-money options over time can help investors to take a profitable long position in Cognyte Software regardless of its overall volatility. This is especially true when Cognyte Software's options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money Cognyte Software's options could be used as guardians of the underlying stock as they move almost dollar for dollar with Cognyte Software's stock while costing only a fraction of its price.
Cognyte Software's latest option contracts expiring on 2022-10-21 are carrying combined implied volatility of 29.83 with a put-to-call open interest ratio of 0.82 over 16 outstanding agreements suggesting investors are buying slightly more calls than puts on contracts expiring on 2022-10-21. The current put volume is at 65, with calls trading at the volume of 38. This yields a 1.71 put-to-call volume ratio. The Cognyte Software option chain provides detailed quote and price information for the current Cognyte Software option contracts. It shows all of Cognyte Software's listed puts, calls, expiration dates, strike prices, and other pricing information.

Open Interest Against 2022-10-21 Option Contracts

Cognyte Software 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 Cognyte Software's lending market. For example, when Cognyte Software'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 Cognyte Software, he or she must hedge the risk by shorting Cognyte Software stock over its option's life.
The chart above shows Cognyte Software'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. Cognyte Software's open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Cognyte Software's option, there is no secondary market available for investors to trade.
Cognyte Software's stock options are financial instruments that give investors the right to buy or sell shares of Cognyte Software common stock at a specified price for a given time period. Generally speaking, an option to purchase or sell Cognyte stock makes it part of the underlying stock when the option's price is tied to the movement of the underlying stock. If Cognyte Software's stock price goes up or down, the stock options follow.
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Please note that buying 'in-the-money' options on Cognyte Software lessens the impact of time decay, as they carry both intrinsic and time value. So, even if Cognyte Software'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 Cognyte Software 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 Cognyte Stock moves the wrong way.

Cognyte Current Options Market Mood

Cognyte Software'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 Cognyte 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 Cognyte Software'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. Cognyte Software'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 Cognyte Software'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 Cognyte contract

Base on the Rule 16, the options market is currently suggesting that Cognyte Software will have an average daily up or down price movement of about 1.86% per day over the life of the 2022-10-21 option contract. With Cognyte Software trading at $4.04, that is roughly $0.0753. If you think that the market is fully incorporating Cognyte Software's daily price movement you should consider buying Cognyte Software options at the current volatility level of 29.83%. But if you have an opposite viewpoint you should avoid it and even consider selling them.

Cognyte Software Option Chain

When Cognyte Software's strike price is surpassing the current stock price, the option contract against Cognyte Software 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.
2022-10-212022-11-182023-01-202023-04-21
Cognyte Software's option chain is a display of a range of information that helps investors for ways to trade options on Cognyte. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Cognyte. It also shows strike prices and maturity days for a Cognyte Software 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 $2.50.92920.0892102022-10-211.2 - 2.01.82In
 Put
2022-10-21 PUT at $5.0-0.86640.30268642022-10-210.95 - 1.00.95In
 Put
2022-10-21 PUT at $7.5-0.85150.119572022-10-212.75 - 4.42.85In
 Put
2022-10-21 PUT at $10.0-0.57370.0829922022-10-215.1 - 6.84.9In
 Put
2022-10-21 PUT at $12.5-0.58990.074602022-10-217.6 - 9.30.0In
 Put
2022-10-21 PUT at $15.0-0.63070.070902022-10-2110.1 - 11.70.0In
 Put
2022-10-21 PUT at $17.5-0.9480.036202022-10-2112.6 - 14.40.0In
 Put
2022-10-21 PUT at $20.0-0.6440.063502022-10-2115.2 - 16.70.0In

Be your own money manager

Our tools can tell you how much better you can do entering a position in Cognyte Software 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 Cognyte Software

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