Options Explained by BetterTrades

What are Stock Options?
• An option is a contract that gives the buyer
the right, but not the obligation, to buy a
stock at specific date at a specific price.

BetterTrades Options Trading Classes
• BetterTrades is the leader in
Stock Option Education,
offering options trading
classes for all skill levels
• Enroll in a free class offered
by BetterTrades

How Options are different from
Stocks?
• Stocks trade in shares whereas Options trade
in contracts, where each contract controls 100
shares of stock.
• Stocks don't expire whereas Options are time
sensitive and expire on the third Friday of the
month.

Types of Options: Calls and Puts
• Calls - Buying a call gives you the right, but not
the obligation to buy the stock at a certain
time (the expiration date) at a certain price
(the strike price).
• Puts - Buying a put gives you the right, but not
the obligation to sell the stock at a certain
time (the expiration date) at a certain price
(the strike price).

American Options vs. European
Options
• American options can be exercised anytime
between the date of purchase and the
expiration date.
• European options may only be redeemed at
the expiration date. Most exchange-traded
stock options are American.

What is an Option Chain?
• An Option Chain is a way of quoting options
prices through a list of all of the options for a
given security, such as stocks or currency.
• For each underlying security, the option chain
tells investors the various strike prices,
expiration dates, and whether they are calls or
puts.

Option Chain

What is the Strike Price?
• The fixed price at which a specific option
contract can be exercised.
• For call options, the strike price is where the
security can be bought (up to the expiration
date).
• For put options the strike price is the price at
which shares can be sold.

Bringing Wall Street To Main Street
www.BetterTrades.com | 1-866-770-9408