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Options Symbol
You might need to look up its symbol, in order to trade a particular option.
(We will of course provide you with the exact symbols you require to place a
trade, if you trade with us). We have created a hypothetical example below, in
order to help you understand how options symbols are structures:
Hypothetical Option Symbol: “ABCDEF”
- Three distinct parts is what every option symbol consists of,
but the six letters it contains are stringed together.
- The name of the underlying security is the first part of an
options symbol consisting of three letters. It is generally the
ticker symbol of the underlying stock, for an option based on a
stock. It can vary greatly for Nasdaq stocks.
- Two letters is what comprises the middle part of an option
symbol. These represent (a) the expiration month and (b) identify
whether it is a put or a call option (see table below for details).
- You need to know that the option symbols are broken down into
three separate sections in order to determine the symbol itself.
| |
Call |
Put |
| January |
A |
M |
| February |
B |
N |
| March |
C |
O |
| April |
D |
P |
| May |
E |
Q |
| June |
F |
R |
| July |
G |
S |
| August |
H |
T |
| September |
I |
U |
| October |
J |
V |
| November |
K |
W |
| December |
L |
X |
- What represents the strike price, is the final letter of an option symbol.
The letter “F” represents a strike price ending with 30, in our particular
example.
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Information Corner:
Market Timing - We trade options based on market timing principles.
This means we analyze past trends in options volume and options cash
volume in order to generate an accurate forecast of the probable future
market trends...
Options Basics - Purchasing an
option gives the buyer the right, but not the obligation, to buy or sell a
specific amount of an underlying security at a specific price within a specified
time period...
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