This phrase describes where the strike price of an option falls relative to the underlying stock price. For covered and naked calls, it is when the stock price is below the strike price of the option. For covered and naked puts, it is when the price of the stock is higher than the strike price of the option. Another term for the price of an option. The last closing price of the stock divided by the last 12 months' sales per share.
Investors generally use sales as an indicator of a company's prospects for growth.
If this number is below 1.5, the stock could be considered undervalued. This is a contract that gives the owner the right but not obligation to sell a stock at the strike price before the expiration date. 1 option contract gives the right to control 100 shares of stock. This is the percent value of where the current stock price falls relative to the stocks' 12 month high and low. Combinations where the stock price is closer to the option strike price.