CluenexGlossary · Options
Option
A contract giving the right, not the obligation, to buy or sell 100 shares at a set price by a set date.
Why it matters
Options let you bet on direction with limited money, earn income on shares you own, or insure a position. They also expire, so time works against buyers.
How to read it
One contract covers 100 shares. A quoted premium of $2.15 costs $215.
Related
Call optionThe right to buy 100 shares at the strike price before expiration.Put optionThe right to sell 100 shares at the strike price before expiration.Strike priceThe price at which an option lets you buy (call) or sell (put) the shares.ExpirationThe last day an option exists. After it, the option is exercised or worthless.PremiumThe price of an option, quoted per share.
In the Cluenex app, this explanation opens next to every option figure, with the live reading for the stock you are looking at. Open it in Cluenex