Stock Options Basics

THIS IS CALLED THE:

• EXPIRATION LIST

• OPTIONS LIST

• OPTION CHAIN

• DATE LIST

THE NUMBER IN THE PARENTHESIS (#) MEANS

• THE CURRENT DATE

• THE NUMBER OF DAYS LEFT UNTIL CONTRACT EXPIRES

• NUMBER OF DAYS LEFT TILL CONTRACT ROLLOVER

• THE AMOUNT OF STRIKES AVAILABLE FOR THE CONTRACT

THIS IS WHERE YOU WILL TYPE YOUR_____

• STOCK NAME

• TICKER

Answer explanation

TICKER IS THE ABBREVIATION FOR THE STOCK NAME

THE PURPLE SECTION IS OTM (OUT-THE-MONEY)

• TRUE

• FALSE

Answer explanation

THE HIGHLIGHTED SECTION IS ITM (IN THE MONEY)

STRIKE IS______

• PRICE

• WHAT YOU WILL MAKE

• WHAT YOU WILL LOSE

• YOUR STOP LOSS

CALLS ARE FOR______

• BUYS

• SELLS

PUTS ARE FOR _______

• BUYS

• SELLS

IN THE MONEY (ITM) MEANS THE STOCK HAS ALREADY REACHED THAT PRICE

• TRUE

• FALSE

YOU HAVE TO MULTIPLY THE ASK PRICE BY ____ TO GET THE COST OF THE CONTRACT

• 1

• 10

• 100

• 1000

Answer explanation

YOU ARE BORROWING 100 SHARES PER CONTRACT

IDENTIFY IN THE MONEY CONTRACTS