Chapter 1 - Introduction
Here you’ll be introduced to the five pieces of information you’ll need to place any equity option order: option symbol (underlying stock); expiration month; strike price; option type (call or put); and quoted price.
Chapter 2 - Directory of Exchange Listed Options
The OCC publication Directory of Exchange Listed Options, available in both a paper and electronic format, is a periodically updated compilation of underlying stocks. It provides both the option symbol and position limit for each class of equity options, and specifies the exchanges on which the options are listed for trading.
Chapter 3 - Equity Option Expiration Cycles
Equity options expire in established patterns called sequential cycles, and these cycles vary among equity option classes. Understanding these patterns can help you foresee the expiration months you might find available in the marketplace for any particular option class at any given time in the future.
Chapter 4 - Symbology Keys
These are sequences of discrete bits of data that identify each specific equity option series available for trading. This information is used by brokerage firms to identify the option contracts to be bought or sold when an option order arrives at an exchange for execution, as well as to keep track of their customers’ open option positions.
Chapter 5 - Option Chains
Thanks to the internet, investors may use option chains as a convenient way to view at a glance both the option series that are available for trading on a particular underlying stock, as well as their quoted market prices. This chapter introduces you to a typical option chain format.
Chapter 6 - LEAPS
This chapter includes supplemental information about equity LEAPS contracts such as when new LEAPS may be listed for trading for a particular option class, as well as how LEAPS expiration months fit into established equity option expiration cycles. Their symbology keys are also considered.