stock questions (1 Viewer)

[Superfan]

Does anyone know what a short term June 50 or a march 50 means? What do the months represent. (Jan- dec)

 

[gaminerie]

i think the months represent expiration dates on the right to sell at a certain price. Just a guess, i don't have my Series 7 or anything.

From Chicago Board Options Exchange site:

What are put options?
The buyer of a put option has purchased the right to sell the number of shares of the underlying stock at the contracted exercise price. Thus, the buyer of one ZYX June 50 put has the right to sell 100 shares of ZYX at $50 any time prior to the expiration date. In order to exercise the option and sell the underlying at the agreed upon exercise price, the buyer must file a proper exercise notice with the OCC through a broker before the date of expiration. All puts covering ZYX stock are referred to as an "option class." Each individual option with a distinctive trading month and strike price is an "option series." The ZYX June 50 puts would be an individual series.

 

[Complex Kid]

 

[Superfan]

I think it means block sizes.. like january is 100 shares and so forth. i just cant find that info anywhere. The stock lexicon is unavaliable anywhere. When i do a search it brings up month stats.

 

[west bank chris]

i'm pretty sure gaminerie is right on this one.