Jenis trading option # option premium # option strike price # option expiration date # option put & call Options have a lot of terminologies, here are some of the most common things you need to know: Premium: Each option participant either receives or pays the price to get into the options which are called the premium. An options buyer pays the premium to the options seller. There are 100 shares associated with each option contract, meaning that you typically pay 100 times the quoted share premium for the 1 options contract. Assume you see an options contract that is priced at $0.50, you will pay $50 for this options contract. Strike price: This is also called the expiration price, the price the options seller is obligated to buy or sell at any time throughout the contract’s life. Expiration date: All options have a finite life, meaning they will expire at some point. Typically options standard expiration is the 3rd Friday of each month. There are many weekly...
