<commit_before>---
layout: post
title: "Options: A quick guide"
excerpt: "An TL;DR style of quick lookup info for basic terms in Options"
tags: [Investing, Terminology, Options, FAQs,]
comments: true
---
## Options: What

# What are shares?

In the traditional sense, a stock is, financially, the smallest
share one could own in the company and represents the lowest unit value that the company
can be divided into.

# What is the value of a single share?

The question has a very complex and a simple answer: The simple
answer, is the value is the current average of the collectively
agreed upon values that the current buyer and seller have agreed
upon in the active stock market.

# What is an option?

It's a contract on the price of 100 shares of the underlying with a
given expiration date.

# What is a 'Strike'?

It's the reference to the expected price of underlying on the
expiration date on the contract (option). Strike price has no direct
relation with the actual value of the underlying on expiration. It's
only based on the outlook of buyer and seller. It may or may not be different from the
current market price of the underlying on expiration.

# What is a Expiry?

It's the date until which a contract is valid for.

# What is an outlook?

Outlook is your opinion (prediction/expectation) on the price of the
underlying. It could be optimistic (share value goes up) or
pessimistic (share value goes down). If optimistic
then it's a bullish outlook else if pessimistic then a bearish
outlook.

# What are the main components of an option?

Underlying, Strike and Expiry. A contract is always made for a given Strike on
a particular Expiry for a given underlying.

# What are Calls?

An option that represents bullish mindset on the underlying for a
strike price and expiry.

# What are Puts?

An option that represents a bearish mindset on the underlying for a
strike price and expiry.

# Who are involved in an options trade transaction?

A Buyer or trader who a is paying for the contract and a Seller or a
trader who is signing the contract. A contract being an option for a
given Strike and Expiry on the underlying.
<commit_msg>Format heading<commit_after>---
layout: post
title: "Options: A quick guide"
excerpt: "An TL;DR style of quick lookup info for basic terms in Options"
tags: [Investing, Terminology, Options, FAQs,]
comments: true
---

# What are shares?

In the traditional sense, a stock is, financially, the smallest
share one could own in the company and represents the lowest unit value that the company
can be divided into.

# What is the value of a single share?

The question has a very complex and a simple answer: The simple
answer, is the value is the current average of the collectively
agreed upon values that the current buyer and seller have agreed
upon in the active stock market.

# What is an option?

It's a contract on the price of 100 shares of the underlying with a
given expiration date.

# What is a 'Strike'?

It's the reference to the expected price of underlying on the
expiration date on the contract (option). Strike price has no direct
relation with the actual value of the underlying on expiration. It's
only based on the outlook of buyer and seller. It may or may not be different from the
current market price of the underlying on expiration.

# What is a Expiry?

It's the date until which a contract is valid for.

# What is an outlook?

Outlook is your opinion (prediction/expectation) on the price of the
underlying. It could be optimistic (share value goes up) or
pessimistic (share value goes down). If optimistic
then it's a bullish outlook else if pessimistic then a bearish
outlook.

# What are the main components of an option?

Underlying, Strike and Expiry. A contract is always made for a given Strike on
a particular Expiry for a given underlying.

# What are Calls?

An option that represents bullish mindset on the underlying for a
strike price and expiry.

# What are Puts?

An option that represents a bearish mindset on the underlying for a
strike price and expiry.

# Who are involved in an options trade transaction?

A Buyer or trader who a is paying for the contract and a Seller or a
trader who is signing the contract. A contract being an option for a
given Strike and Expiry on the underlying.

{'fraction_non_alphanumeric': 0.040363975734951006, 'fraction_numerical': 0.0013999066728884741, 'mean_word_length': 4.134131736526946, 'pattern_counts': {'":': 0, '<': 3, '<?xml version=': 0, '>': 3, 'https://': 0, 'lorem ipsum': 0, 'www.': 0, 'xml': 0}, 'pii_count': 0, 'substrings_counts': 0, 'word_list_counts': {'cursed_substrings.json': 0, 'profanity_word_list.json': 0, 'sexual_word_list.json': 0, 'zh_pornsignals.json': 0}}
{'dir': 'git-commits-cleaned', 'id': '7134729', 'n_tokens_mistral': 1177, 'n_tokens_neox': 1104, 'n_words': 723}