Trading Options

Executing an Option Trade

Trading options can also be more complicated than trading a traditional investment, like a stock, where you simply give an order to buy or sell. With options, there are more choices.

Rulemakers

Each exchange decides on the options it's going to list, or make available for trading, and the SEC regulates the options selection process.

Getting Listed

Most equity options are traded on options exchanges, and many are multiply listed, meaning they're available on more than one exchange.

Option Symbols

Options symbols contain a series of letters with different meanings.

Option Quote Increments

Option bid and ask prices are quoted in minimum increments, and these increments differ depending on price and sometimes on the underlying security.