Identifying an Option

While looking at an option contract, you need to look for the following four aspects:

  1. Whether it is a Call or a Put.
  2. What the underlying security is.  Options can be written on almost anything: stock prices, stock indexes, FX rates, interest rates, commodities, etc.
  3. The expiration date (When does the option expire - tomorrow? Next month? Next year?)
  4. The fixed price (called the strike price or exercise price) you can buy or sell at.

The following is an example of how to identify an option.