Chapter 2. Into the Marketplace
How to Read Option Prices
The main components of an on-screen options price are as follows:
• The underlying instrument
• The expiration date of the option
• The option symbol
• 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. Typical layout for a call option chain
Here is part of a call option chain for Apple Inc (AAPL). There are about one thousand individual options for Apple, spanning a number of strike prices and different expiration dates. Each option has a strike price and ...
Get Options Made Easy: Your Guide to Profitable Trading, Third Edition now with O’Reilly online learning.
O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.