The components of an options symbol are: Root symbol (ticker symbol) + Expiration Year (yy) + Expiration Month (mm) + Expiration Day (dd) + Call/Put Indicator (C or P) + Strike Price*.
Just like stocks, every option contract has a unique ticker symbol. While the underlying stock of an option has only one ticker symbol (e.g., INTC is the ticker for Intel), there can be hundreds for the option contracts tied to that same stock.
The OCC Option Symbol
Root symbol of the underlying stock or ETF, padded with spaces to 6 characters. Expiration date, 6 digits in the format yymmdd. Option type, either P or C, for put or call. Strike price, as the price x 1000, front padded with 0s to 8 digits.
Calls and Puts
A call option gives you the right (but not the obligation) to purchase 100 shares of the stock at a certain price up to a certain date. A put option also gives you the right (and again, not the obligation) to sell 100 shares at a certain price up to a certain date. Call options are always listed first.
An option ticker can be broken down into three parts. ... The third part of the option ticker is the strike price of the option, and this is also a single letter. Because there is a wide range of potential strike prices and a limited number of letters, each letter represents more than one strike price.
You can check the option expiration date by looking at the options trading symbol. For example, you might be looking to trade an Apple call option with the symbol AAPL101016C00290000. The 6 numbers following the root symbol – 101016 -- is the expiration date.
When you buy a put option, your total liability is limited to the option premium paid. That is your maximum loss. However, when you sell a call option, the potential loss can be unlimited. ... If you are playing for a rise in volatility, then buying a put option is the better choice.
Example of a Put Option Transaction
Each option contract is worth 100 shares, so this gives him the right to sell 100 shares of Ford at $11 before the expiration date. If Max already holds 100 shares of Ford, his broker will sell these shares at the $11 strike price. ... Let's say the stock falls to $8 per share.
To calculate profits or losses on a put option use the following simple formula: Put Option Profit/Loss = Breakeven Point – Stock Price at Expiration.
“C” indicates a call option. A put option would be indicated by a “P.” • Strike Price – 00600000 — The strike price is comprised of one to nine numbers.
Bid (B) is what the buyer wants to buy at; A(A) ask is what the seller would like for their share.
The gamma squeeze happens when the underlying stock's price begins to go up very quickly within a short period of time. As more money flows into call options from investors, that forces more buying activity which can lead to higher stock prices.
Yet No Comments