Essent Stock Options

ESNT
 Stock
  

USD 37.78  0.07  0.19%   

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

In The Money vs. Out of Money Option Contracts on Essent

Analyzing Essent's in-the-money options over time can help investors to take a profitable long position in Essent regardless of its overall volatility. This is especially true when Essent's options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money Essent's options could be used as guardians of the underlying stock as they move almost dollar for dollar with Essent's stock while costing only a fraction of its price.
Essent's latest option contracts expiring on 2022-12-16 are carrying combined implied volatility of 97.27 with a put-to-call open interest ratio of 0.61 over 16 outstanding agreements suggesting investors are buying more calls than puts on contracts expiring on 2022-12-16. The current put volume is at 3, with calls trading at the volume of 13. This yields a 0.23 put-to-call volume ratio. The Essent option chain provides detailed quote and price information for the current Essent Group option contracts. It shows all of Essent's listed puts, calls, expiration dates, strike prices, and other pricing information.

Open Interest Against 2022-12-16 Option Contracts

Essent 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 Essent's lending market. For example, when Essent'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 Essent, he or she must hedge the risk by shorting Essent stock over its option's life.
The chart above shows Essent'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. Essent's open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Essent's option, there is no secondary market available for investors to trade.
Essent's stock options are financial instruments that give investors the right to buy or sell shares of Essent Group common stock at a specified price for a given time period. Generally speaking, an option to purchase or sell Essent stock makes it part of the underlying stock when the option's price is tied to the movement of the underlying stock. If Essent's stock price goes up or down, the stock options follow.
Continue to Investing Opportunities.
Please note that buying 'in-the-money' options on Essent lessens the impact of time decay, as they carry both intrinsic and time value. So, even if Essent'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 Essent 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 Essent Stock moves the wrong way.
Net Income Common Stock is likely to gain to about 735.6 M in 2022

Essent Current Options Market Mood

Essent'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 Essent 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 Essent'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. Essent'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 Essent'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 Essent contract

Base on the Rule 16, the options market is currently suggesting that Essent Group will have an average daily up or down price movement of about 6.08% per day over the life of the 2022-12-16 option contract. With Essent trading at USD37.78, that is roughly USD2.3. If you think that the market is fully incorporating Essent's daily price movement you should consider buying Essent Group options at the current volatility level of 97.27%. But if you have an opposite viewpoint you should avoid it and even consider selling them.

Essent Option Chain

When Essent's strike price is surpassing the current stock price, the option contract against Essent Group 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.
2022-12-162023-01-202023-04-212023-07-21
Essent's option chain is a display of a range of information that helps investors for ways to trade options on Essent. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Essent. It also shows strike prices and maturity days for a Essent 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
2022-12-16 CALL at $20.00.9260.006902022-12-1616.6 - 20.50.0In
Call
2022-12-16 CALL at $25.00.90330.012302022-12-1611.4 - 15.50.0In
Call
2022-12-16 CALL at $30.00.85330.024702022-12-166.6 - 10.46.3In
Call
2022-12-16 CALL at $35.00.78670.076702022-12-161.15 - 4.53.2In
 Put
2022-12-16 PUT at $40.0-0.68090.084922022-12-160.85 - 3.10.79In
 Put
2022-12-16 PUT at $45.0-0.75080.037602022-12-165.3 - 8.40.0In
 Put
2022-12-16 PUT at $50.0-0.92350.020602022-12-1611.6 - 13.40.0In
 Put
2022-12-16 PUT at $55.0-0.93530.014502022-12-1616.6 - 18.40.0In

Essent Net Income Common Stock Over Time

The amount of net income (loss) for the period due to common shareholders. Typically differs from Net Income to the parent entity due to the deduction of Preferred Dividends.
   Net Income Common Stock   
Share
       Timeline  

Essent Group Historical Liabilities

While analyzing the current debt level is an essential aspect of forecasting the current year budgeting needs of Essent, understanding its historical liability is critical in projecting Essent's future earnings, especially during periods of low and high inflation and deflation. Many analysts look at the trend in assets and liabilities and evaluate how Essent uses its financing power over time.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Essent 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.

Did you try this?

Run Efficient Frontier Now

   

Efficient Frontier

Plot and analyze your portfolio and positions against risk-return landscape of the market.
All  Next Launch Module

Pair Trading with Essent

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

Moving together with Essent

+0.87BKBank of New York Sell-off TrendPairCorr
+0.86CCitigroup Fiscal Year End 13th of January 2023 PairCorr
The ability to find closely correlated positions to Essent could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Essent 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 Essent - 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 Essent Group to buy it.
The correlation of Essent 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 Essent moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Essent Group 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 Essent 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
Continue to Investing Opportunities. You can also try Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

Complementary Tools for analysis

When running Essent Group price analysis, check to measure Essent's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Essent is operating at the current time. Most of Essent's value examination focuses on studying past and present price action to predict the probability of Essent's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Essent's price. Additionally, you may evaluate how the addition of Essent to your portfolios can decrease your overall portfolio volatility.
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Is Essent'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 Essent. If investors know Essent 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 Essent listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
(0.1) 
Market Capitalization
4.1 B
Quarterly Revenue Growth YOY
(0.08) 
Return On Assets
0.1171
Return On Equity
0.2044
The market value of Essent Group is measured differently than its book value, which is the value of Essent that is recorded on the company's balance sheet. Investors also form their own opinion of Essent's value that differs from its market value or its book value, called intrinsic value, which is Essent'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 Essent's market value can be influenced by many factors that don't directly affect Essent'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 Essent's value and its price as these two are different measures arrived at by different means. Investors typically determine Essent value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Essent'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.