Options Trading: Basic Terminology

By Patricia Uceda, Spring 2015 Graduate Research Assistant

If you are thinking about buying or selling options, there is some basic terms that you should understand first. Today we’ll focus on the terms inherent in an option quote. The SEC does a great job of explaining the different parts of a basic stock option contract quote.  To decode what “ABC December 70 Call $2.20” means, check out the SEC’s Investor Bulletin: An Introduction to Options, available here.  After you decode the basic stock option contract quote, be sure to continue reading so you will be familiar with related terms in options trading.