Finally, let's take a look at the Options table:
Column 1: Strike Price.This is the stated price per share for which underlying stock may be purchased (for a call) or sold (for a put) by the option holder upon exercise of the option contract. When you exercise a call option, this is the value for which you purchase the shares. Option strike prices typically move in increments of $2.50 or $5. In the example above, the strike price moves in $2 increments.
Column 2: Expiry Date. This shows the end of the life of an options contract. Options expire on the third Friday of the expiry month.
Column 3: Call or Put. This column refers to whether the option is a call or a put. A call is the option to purchase, whereas a put is the option to sell.
Column 4: Volume. This indicates the total number of options contracts traded for the day. The total volume of all contracts is listed at the bottom of each table.
Column 5: Bid. The price someone is willing to pay for the options contract. To get the cost of one contract you need to multiply the price by 100.
Column 6: Ask. The price for which someone is willing to sell an options contract. To get the cost of one contract you need to multiply the price by 100.
Column 7: Open Interest. Open interest is the number of options contracts that are open. These are contracts that have not expired or have not been exercised.
TradingLearning to understand the language of options chains will help you become a more informed trader.
TradingA brief overview of how to profit from using put options in your portfolio.
TradingA brief overview of how to provide from using call options in your portfolio.
TradingA look at trading options on debt instruments, like U.S. Treasury bonds and other government securities.
TradingThe ability to exercise only on the expiration date is what sets these options apart.
TradingLearn the top three risks and how they can affect you on either side of an options trade.