So, let’s get right into it and take a look at the following option quote for YAHOO CALL contracts. One thing I would suggest for someone new to option trading is to watch the quote of option contract price in relation to the underlying stock price. Remember a CALL option contract is a contract where the strike price (price of stock at expiration) is at, in or higher than then current underlying stock price which is YAHOO in this example. Between Feb 2007 and January 2008 is approximately 11 months, so this type of long term option contract is called a LEAP, more on this later.


On that line you will also see the actual stock option symbol WYHAE.X , Last Price, Change, Bid Price, Ask Price, Volume and Open Interest.
For you to get into this position with 2 option contracts would be whatever you bid and get filled at, if you didn’t want to pay what the seller was asking for. However, the process of obtaining and reading option quotes for PUT option contracts is exactly the same. Watch what happens to the option contract price when the stock price goes up, and what happens to the option contract price when the stock price goes down.


This monitoring of the price of the contract in relation to the underlying stock it represents will give you a better idea of how quickly, how much option prices move when there is a change in the underlying stock price. I encourage you to go to Yahoo Finance and go through the process of getting an option quote.



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Comments

  1. Rena

    That if they are doing any beneficial?for?Australian?traders They have a low deposit amount and selling sites.

    05.12.2013

  2. Koshka

    And the potential for revolutionary that are.

    05.12.2013

  3. RAZIN_USAGI

    Could be something like this; If value breaks legit.

    05.12.2013

  4. xuliganka

    The detailed video before starting.

    05.12.2013