Hormel Foods Stock Options

HRL
 Stock
  

USD 46.20  0.76  1.67%   

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

In The Money vs. Out of Money Option Contracts on Hormel Foods

Analyzing Hormel Foods' in-the-money options over time can help investors to take a profitable long position in Hormel Foods regardless of its overall volatility. This is especially true when Hormel Foods' options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money Hormel Foods' options could be used as guardians of the underlying stock as they move almost dollar for dollar with Hormel Foods' stock while costing only a fraction of its price.
Hormel Foods' latest option contracts expiring on 2022-10-07 are carrying combined implied volatility of 50.9 with a put-to-call open interest ratio of 0.44 over 68 outstanding agreements suggesting investors are buying more calls than puts on contracts expiring on 2022-10-07. The current put volume is at 159, with calls trading at the volume of 211. This yields a 0.75 put-to-call volume ratio. The Hormel Foods option chain provides detailed quote and price information for the current Hormel Foods Corp option contracts. It shows all of Hormel Foods' listed puts, calls, expiration dates, strike prices, and other pricing information.

Open Interest Against 2022-10-07 Option Contracts

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

Hormel Foods Maximum Pain Price across 2022-10-07 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 Hormel Foods 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.
Hormel Foods' stock options are financial instruments that give investors the right to buy or sell shares of Hormel Foods Corp common stock at a specified price for a given time period. Generally speaking, an option to purchase or sell Hormel stock makes it part of the underlying stock when the option's price is tied to the movement of the underlying stock. If Hormel Foods' stock price goes up or down, the stock options follow.
Please check Risk vs Return Analysis.
Please note that buying 'in-the-money' options on Hormel Foods lessens the impact of time decay, as they carry both intrinsic and time value. So, even if Hormel Foods' 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 Hormel Foods 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 Hormel Stock moves the wrong way.

Hormel Foods Corp In The Money Call Balance

When Hormel Foods' strike price is surpassing the current stock price, the option contract against Hormel Foods Corp stock is said to be in the money. When it comes to buying Hormel Foods' 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 Hormel Foods Corp 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.

Hormel Current Options Market Mood

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

Base on the Rule 16, the options market is currently suggesting that Hormel Foods Corp will have an average daily up or down price movement of about 3.18% per day over the life of the 2022-10-07 option contract. With Hormel Foods trading at $46.2, that is roughly $1.47. If you think that the market is fully incorporating Hormel Foods' daily price movement you should consider buying Hormel Foods Corp options at the current volatility level of 50.9%. But if you have an opposite viewpoint you should avoid it and even consider selling them.

Hormel Foods Option Chain

When Hormel Foods' strike price is surpassing the current stock price, the option contract against Hormel Foods Corp 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.
2022-10-072022-10-142022-10-212022-10-282022-11-042022-11-112022-11-182022-12-162023-01-202023-03-172023-12-152024-01-192025-01-17
Hormel Foods' option chain is a display of a range of information that helps investors for ways to trade options on Hormel. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Hormel. It also shows strike prices and maturity days for a Hormel Foods 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
2022-10-07 CALL at $25.00.9790.003302022-10-0721.1 - 21.60.0In
Call
2022-10-07 CALL at $30.00.98010.004702022-10-0716.0 - 16.60.0In
Call
2022-10-07 CALL at $34.00.98730.00502022-10-0712.1 - 12.40.0In
Call
2022-10-07 CALL at $35.00.96050.011102022-10-0711.1 - 11.60.0In
Call
2022-10-07 CALL at $36.00.96940.010802022-10-0710.0 - 10.60.0In
Call
2022-10-07 CALL at $37.00.98380.008102022-10-079.1 - 9.40.0In
Call
2022-10-07 CALL at $38.00.96330.015302022-10-078.0 - 8.60.0In
Call
2022-10-07 CALL at $39.00.95940.018802022-10-077.0 - 7.60.0In
Call
2022-10-07 CALL at $40.00.95440.023502022-10-076.1 - 6.50.0In
Call
2022-10-07 CALL at $41.00.92820.03502022-10-075.1 - 5.60.0In
Call
2022-10-07 CALL at $42.00.93930.041102022-10-074.0 - 4.60.0In
Call
2022-10-07 CALL at $43.00.92680.059302022-10-073.1 - 3.50.0In
Call
2022-10-07 CALL at $44.00.8750.101902022-10-072.1 - 2.60.0In
Call
2022-10-07 CALL at $45.00.79620.185412022-10-071.2 - 1.61.2In
Call
2022-10-07 CALL at $46.00.56690.269312022-10-070.55 - 0.750.7In
Call
2022-10-07 CALL at $47.00.26970.2689442022-10-070.1 - 0.250.2Out
Call
2022-10-07 CALL at $48.00.08660.1245742022-10-070.0 - 0.150.05Out
Call
2022-10-07 CALL at $65.00.00540.0026102022-10-070.0 - 0.350.01Out
Call
2022-10-07 CALL at $70.00.00460.0019652022-10-070.0 - 0.050.01Out
 Put
2022-10-07 PUT at $44.0-0.10870.0993102022-10-070.0 - 0.20.1Out
 Put
2022-10-07 PUT at $45.0-0.18240.1903362022-10-070.1 - 0.50.14Out
 Put
2022-10-07 PUT at $46.0-0.43040.2821582022-10-070.3 - 0.60.65Out
 Put
2022-10-07 PUT at $47.0-0.71920.26162022-10-070.8 - 1.21.6In
 Put
2022-10-07 PUT at $48.0-0.94990.098202022-10-071.6 - 2.02.2In
 Put
2022-10-07 PUT at $49.0-0.67850.069112022-10-070.95 - 3.82.47In
 Put
2022-10-07 PUT at $50.0-0.91560.0599132022-10-072.15 - 5.64.0In
 Put
2022-10-07 PUT at $51.0-0.87670.053802022-10-073.3 - 6.70.0In
 Put
2022-10-07 PUT at $52.0-0.90480.042102022-10-074.3 - 7.60.0In
 Put
2022-10-07 PUT at $53.0-0.89760.037302022-10-075.7 - 8.30.0In
 Put
2022-10-07 PUT at $54.0-0.91930.030302022-10-076.4 - 9.50.0In
 Put
2022-10-07 PUT at $55.0-0.91090.028202022-10-078.5 - 9.00.0In
 Put
2022-10-07 PUT at $56.0-0.9290.023402022-10-079.0 - 10.90.0In
 Put
2022-10-07 PUT at $57.0-0.92020.022602022-10-079.8 - 12.20.0In
 Put
2022-10-07 PUT at $58.0-0.94940.016902022-10-0710.2 - 13.60.0In
 Put
2022-10-07 PUT at $59.0-0.95170.015402022-10-0711.5 - 14.30.0In
 Put
2022-10-07 PUT at $60.0-0.91980.018402022-10-0712.4 - 15.70.0In
 Put
2022-10-07 PUT at $61.0-0.95550.01302022-10-0713.3 - 16.50.0In
 Put
2022-10-07 PUT at $62.0-0.95710.012102022-10-0714.5 - 17.30.0In
 Put
2022-10-07 PUT at $63.0-0.95860.011302022-10-0715.8 - 18.00.0In
 Put
2022-10-07 PUT at $65.0-0.95020.011402022-10-0717.2 - 20.70.0In
 Put
2022-10-07 PUT at $70.0-0.95590.008802022-10-0723.5 - 24.40.0In

Hormel Foods Implied Volatility

    
  50.9  
Hormel Foods' implied volatility exposes the market's sentiment of Hormel Foods Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Hormel Foods' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Hormel Foods stock will not fluctuate a lot when Hormel Foods' options are near their expiration.
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 Hormel Foods 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, Hormel Foods' short interest history, or implied volatility extrapolated from Hormel Foods options trading.

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Please check Risk vs Return Analysis. You can also try Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

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