Search Investopedia

Options Contract

Filed Under » , ,
Dictionary Says

Definition of 'Options Contract'

One options contract represents one hundred shares in the underlying stock. The quoted price of an option is per share.
Investopedia Says

Investopedia explains 'Options Contract'

The quoted price of a stock option must be multiplied by 100 to get the cost per contract.

Related Definitions

  •

    Call

    1. The period of time between the opening and closing of some future markets wherein the prices are established through an auction process.2. An option contract giving the owner the ...
    Read More »

  • Long-Term Equity Anticipation Securities - LEAPS

    Publicly traded options contracts with expiration dates that are longer than one year. Structurally, LEAPS are no different than short-term options, but the later expiration dates offer ...
    Read More »

  • Option

    A financial derivative that represents a contract sold by one party (option writer) to another party (option holder). The contract offers the buyer the right, but not the obligation, to ...
    Read More »

    • Put

      An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time. The buyer of a put option ...
      Read More »

    • Must Be Filled - MBF

      A must be filled (MBF) order is a trade that must be executed due to expiring options or futures contracts on those exchanges. Many MBF orders are filled on the third Friday of each ...
      Read More »

    • Call Over

      When the buyer of a call option exercises the option. In options trading, the buyer of a call option can exercise his or her right to purchase or sell the underlying asset (such as a ...
      Read More »

    • Forward Start Option

      The advance purchase of a put or call option with a strike price that will be determined at a later date, typically when the option becomes active. A forward start option becomes active ...
      Read More »

    • Covered Writer

      An options seller who owns the underlying security represented by the options contract. A covered writer holds the underlying security as a hedge against the options contract. If the ...
      Read More »

    • Options Industry Council - OIC

      A cooperative formed in 1992 by U.S. options exchanges and Options Clearing Corporation (OCC) to educate investors and financial advisers regarding the benefits and risks of ...
      Read More »

    • Option Chain

      A form of quoting options prices through a list of all of the options for a given security. An option chain is simply a listing of all the put and call option strike prices along with ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions