An introduction to important terms in options

(1) Strike price (also known as “exercise price”), if the market price of a stock is 100 dollars, you buy 150 dollars of bullish options, 150 dollars is the exercise price.

(2) Expiration date (also known as “call-over date”), if you buy an option that expires on July 15, 2030, then this day is the call-over date.

(3)Open interest: the number of contracts that have not expired and have not been executed.

(4) Contract, the unit of an option is a contract, usually each contract is the right to 100 shares of stock.

(5) settlement type: Stock options are generally physical settlement (physical settlement), and index options are generally cash settlement (cash settlement).