Bootcamp Class 3-Option Chain

The correct term for what is pictured is ________.

• OPTION LIST

• OPTION GRID

• OPTION CHAIN

The number inside the parenthesis (#) indicates:

• How many dollars the stock is expected to move

• How many days left to expiration (DTE)

• How many contracts are available to trade

The % displays___________.

• DELTA

• GAMMA

• IMPLIED VOLATILITY

• THETA

Answer explanation

It states the expected implied volatility for the term of that contract

The difference between ASK & BID is called the _______.

As your trade becomes more profitable it will move further ITM.

• TRUE

• FALSE

ATM contract displays a strike furthest from the stocks current price.

• TRUE

• FALSE

Answer explanation

ATM contract is going to display a strike CLOSEST to where the stock price is at.

Where are the ITM (in the money) contracts located?
Broker (TOS)

Where are the OTM contracts?
Broker (TOS)

Which column displays STRIKE's?

The +/- sign indicate:

• Estimate of the stocks price movement for the contract selected for the term of the contract.

• How much money you will make when the contract expires

• How much time you have left on the contract (DTE)