What is an Option?

Learn the standardized characteristics of exchange-traded options as well as their contract specifications. An overview of the option chain and the rights and obligations associated with call and put options are also discussed.

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Certain content on this website is licensed from third parties who are not licensed securities or derivatives business operators or a licensed derivatives exchange or derivatives clearing house under applicable laws. The content of this website is solely for educational purposes and is not a recommendation for the purchase or sale of any particular derivatives, securities or other financial instruments, and does not provide investment advice for trading of any particular derivatives, securities or other financial instruments. The content hereof does not solicit or propose the purchase or sale of any derivatives, securities or other financial instruments or offer to provide brokerage or any other services of this type within the meanings of “derivatives business” or similar term under any applicable law. The content hereof is not intended to solicit investment interest to trade any products through a trading system of any derivatives exchanges or to settle any obligations under derivatives transactions through a clearing system of any derivatives clearing houses. Options involve risk and are not suitable for all investors. Investors should consult local derivatives business operators or derivatives exchanges/clearing houses that are legally organized and licensed if there is any intention to invest in options.