Northwest Bancshares Stock Options

NWBI
 Stock
  

USD 13.51  0.28  2.03%   

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

In The Money vs. Out of Money Option Contracts on Northwest Bancshares

Analyzing Northwest Bancshares' in-the-money options over time can help investors to take a profitable long position in Northwest Bancshares regardless of its overall volatility. This is especially true when Northwest Bancshares' options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money Northwest Bancshares' options could be used as guardians of the underlying stock as they move almost dollar for dollar with Northwest Bancshares' stock while costing only a fraction of its price.
Northwest Bancshares' latest option contracts expiring on 2022-10-21 are carrying combined implied volatility of 20.11 with a put-to-call open interest ratio of 3.22 over 22 outstanding agreements suggesting investors are buying way more puts than calls on contracts expiring on 2022-10-21. The current put volume is at 20, with calls trading at the volume of 4. This yields a 5.0 put-to-call volume ratio. The Northwest Bancshares option chain provides detailed quote and price information for the current Northwest Bancshares option contracts. It shows all of Northwest Bancshares' listed puts, calls, expiration dates, strike prices, and other pricing information.

Open Interest Against 2022-10-21 Option Contracts

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

Northwest Current Options Market Mood

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

Base on the Rule 16, the options market is currently suggesting that Northwest Bancshares will have an average daily up or down price movement of about 1.26% per day over the life of the 2022-10-21 option contract. With Northwest Bancshares trading at $13.51, that is roughly $0.17. If you think that the market is fully incorporating Northwest Bancshares' daily price movement you should consider buying Northwest Bancshares options at the current volatility level of 20.11%. But if you have an opposite viewpoint you should avoid it and even consider selling them.

Northwest Bancshares Option Chain

When Northwest Bancshares' strike price is surpassing the current stock price, the option contract against Northwest Bancshares 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.
2022-10-212022-11-182023-02-172023-05-19
Northwest Bancshares' option chain is a display of a range of information that helps investors for ways to trade options on Northwest. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Northwest. It also shows strike prices and maturity days for a Northwest Bancshares 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 $2.50.96920.003202022-10-2110.9 - 12.60.0In
Call
2022-10-21 CALL at $5.00.94630.009202022-10-218.1 - 10.20.0In
Call
2022-10-21 CALL at $7.50.8970.020202022-10-216.0 - 7.70.0In
Call
2022-10-21 CALL at $10.00.93560.039902022-10-212.55 - 5.20.0In
Call
2022-10-21 CALL at $12.50.74840.139612022-10-210.6 - 2.71.35In
 Put
2022-10-21 PUT at $15.0-0.85190.2128812022-10-211.0 - 1.31.2In
 Put
2022-10-21 PUT at $17.5-0.78580.081402022-10-212.9 - 4.10.0In
 Put
2022-10-21 PUT at $20.0-0.79660.055702022-10-214.9 - 6.70.0In
 Put
2022-10-21 PUT at $22.5-0.79650.044302022-10-218.1 - 9.30.0In
 Put
2022-10-21 PUT at $25.0-0.90980.030202022-10-2110.9 - 11.90.0In
 Put
2022-10-21 PUT at $30.0-0.77930.030902022-10-2115.0 - 17.10.0In

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 Northwest Bancshares 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, Northwest Bancshares' short interest history, or implied volatility extrapolated from Northwest Bancshares options trading.

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Additionally, see Correlation Analysis. Note that the Northwest Bancshares information on this page should be used as a complementary analysis to other Northwest Bancshares' 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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When running Northwest Bancshares price analysis, check to measure Northwest Bancshares' 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 Northwest Bancshares is operating at the current time. Most of Northwest Bancshares' value examination focuses on studying past and present price action to predict the probability of Northwest Bancshares' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Northwest Bancshares' price. Additionally, you may evaluate how the addition of Northwest Bancshares to your portfolios can decrease your overall portfolio volatility.
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Is Northwest Bancshares' 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 Northwest Bancshares. If investors know Northwest 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 Northwest Bancshares 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 Northwest Bancshares is measured differently than its book value, which is the value of Northwest that is recorded on the company's balance sheet. Investors also form their own opinion of Northwest Bancshares' value that differs from its market value or its book value, called intrinsic value, which is Northwest Bancshares' 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 Northwest Bancshares' market value can be influenced by many factors that don't directly affect Northwest Bancshares' 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 Northwest Bancshares' value and its price as these two are different measures arrived at by different means. Investors typically determine Northwest Bancshares value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Northwest Bancshares' 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.