Symbol - Every option contract has a unique symbol, much like a stock ticker. This means no matter how high apple goes before the expiration date, I have the option to execute my contract for $90 per share.

Strike - This is the price per share that, if executed, the buyer of the option contract is able to purchase the stock. We will use this Dec 19 ending contract as an example.

You can buy contracts years in advance of expiration. This means that the terms of this contract are valid until the given date. First notice that this is an option expiring Fri, as it says in the upper right corner. Below is an example of a Call Option table for Apple. In other words, when buying an option, you are buying a contract with the 'option' to purchase 100 shares per contract at any time within the contract period. You can sign up here: Open an account at TradeKing and get $50.įirst, an Option is a leveraged contract purchased at a premium, representing the control of 100 shares of a given stock. Good platform, some of the lowest commissions I have seen, and they are running a $50 credit promotion for sign up before December. If you are currently having grief with your trading platform or are looking for a new platform to trade options with, I recommend TradeKing. Hopefully I can shed some light on why I choose to trade them. I understand option trading can be confusing, but I thought I would dedicate a post to give a quick definition of options trading, more particularly call options rather than puts, considering that calls are mostly what I have been doing lately. A frequent question I have been receiving in emails have been dealing with my decision to trade options for my long positions.

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