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A celebration of the 100 most influential advisors and their contributions to critical conversations on finance. The latest markets news, real time quotes, financials and more. What do all of the letters in a stock option ticker symbol mean? The option ticker explains four main things about the option: the underlying stock, whether it is a call or a put option, the expiration month and the strike price. An option ticker is quoted by a series of letters.
This is a lot of information crammed into one ticker, but we can help you decode option ticker symbols. An option ticker can be broken down into three parts. The first part of the option ticker is the option symbol, which can vary in letter length. Typically, this symbol will be found on all the options of the company and will be identical to the stock symbol.
However, this is not an absolute. Here is a visual breakdown of an Oct. GMIU – The last two letters provide information pertaining to the terms of the contract. Looking at the above chart, we see that this is a call option that expires in September. When it comes to the strike price, it is important to remember that strike prices for most options do not vary a great deal from the current stock price. Be warned that in the event of stock restructurings, like five for seven stock splits or mergers, there may be no way to use the codes above to find out information about the option. If such a restructuring occurs, the exchange on which the option is traded will change the option ticker symbol accordingly.
For further reading, see our Option Basics Tutorial. Why Do Mutual Fund Tickers Have an ‘X’ at the End? Mutual fund tickers end with an ‘X’ to distinguish them from other types of securities. How do I change my strike price once the trade has been placed already? What is the difference between in the money and out of the money? How can derivatives be used to earn income? Are there any risks involved in trading put options through a traditional broker?