How to Read Option Prices
The main components of an on-screen options price are
the underlying instrument
the expiration date of the option
the exercise (strike) price of the option
the bid/ask of the option price
the volume of the particular option on that day
the Open Interest of the specific option
Example 2.1. A Call Option Chain
As you can see, here is part of a call option chain for Microsoft Corp (MSFT). There are hundreds of individual options for Microsoft, spanning a number of exercise prices and different expiration dates. Each option has a strike price and an expiration date. For each option there will be a different ... |
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