China Life Stock Options

LFC
 Stock
  

USD 5.58  0.01  0.18%   

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

In The Money vs. Out of Money Option Contracts on China Life

Analyzing China Life's in-the-money options over time can help investors to take a profitable long position in China Life regardless of its overall volatility. This is especially true when China Life's options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money China Life's options could be used as guardians of the underlying stock as they move almost dollar for dollar with China Life's stock while costing only a fraction of its price.
China Life's latest option contracts expiring on 2023-01-20 are carrying combined implied volatility of 39.37 with a put-to-call open interest ratio of 1.29 over 6 outstanding agreements suggesting investors are buying more puts than calls on contracts expiring on 2023-01-20. The current put volume is at 9, with calls trading at the volume of 2. This yields a 4.5 put-to-call volume ratio. The China Life option chain provides detailed quote and price information for the current China Life Insurance option contracts. It shows all of China Life's listed puts, calls, expiration dates, strike prices, and other pricing information.

Open Interest Against 2023-01-20 Option Contracts

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

China Life Insurance In The Money Call Balance

When China Life's strike price is surpassing the current stock price, the option contract against China Life Insurance stock is said to be in the money. When it comes to buying China Life'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 China Life Insurance 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.

China Current Options Market Mood

China Life'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 China 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 China Life'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. China Life'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 China Life'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 China contract

Base on the Rule 16, the options market is currently suggesting that China Life Insurance will have an average daily up or down price movement of about 2.46% per day over the life of the 2023-01-20 option contract. With China Life trading at $5.58, that is roughly $0.14. If you think that the market is fully incorporating China Life's daily price movement you should consider buying China Life Insurance options at the current volatility level of 39.37%. But if you have an opposite viewpoint you should avoid it and even consider selling them.

China Life Option Chain

When China Life's strike price is surpassing the current stock price, the option contract against China Life Insurance 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.
2023-01-202023-04-21
China Life's option chain is a display of a range of information that helps investors for ways to trade options on China. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for China. It also shows strike prices and maturity days for a China Life 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
2023-01-20 CALL at $5.00.89450.081502023-01-201.25 - 2.952.3In
Call
2023-01-20 CALL at $7.50.35480.32741422023-01-200.1 - 0.450.25Out
 Put
2023-01-20 PUT at $10.0-0.79580.110422023-01-201.4 - 3.23.2In
 Put
2023-01-20 PUT at $7.5-0.65060.34757062023-01-200.5 - 0.950.46In

Be your own money manager

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Additionally, see Correlation Analysis. Note that the China Life Insurance information on this page should be used as a complementary analysis to other China Life'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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

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Is China Life'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 China Life. If investors know China 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 China Life 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
(0.18) 
Market Capitalization
102.5 B
Quarterly Revenue Growth YOY
(0.24) 
Return On Assets
0.006
Return On Equity
0.0763
The market value of China Life Insurance is measured differently than its book value, which is the value of China that is recorded on the company's balance sheet. Investors also form their own opinion of China Life's value that differs from its market value or its book value, called intrinsic value, which is China Life'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 China Life's market value can be influenced by many factors that don't directly affect China Life'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 China Life's value and its price as these two are different measures arrived at by different means. Investors typically determine China Life value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, China Life'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.