What an ASX option contract is
Name the parts of an option contract: underlying, call or put, strike, expiry, premium, contract size and exercise style.
Module 12 of 26, Options for beginners, in practice. Lesson 1 of 6, about 16 minutes.
The takeaway
An ASX option contract is a right to buy (call) or sell (put) a standard number of shares (usually 100) at a fixed strike price. The premium is quoted per share but always multiplied by 100 for the full contract cost.
This page is a public summary. The full lesson has the worked examples, an interactive exercise and a short quiz, and sits in the course. Lessons 1 and 2 of Module 1 are free and the rest need a pass.
Open this lesson in the course
General information only. It doesn't consider your objectives, finances or needs. Tickfloor holds no financial services licence and never places trades.