Symbols Guide - Equity & Index Options
There are two types of equity options, calls and puts. A call option gives its holder the right to buy an underlying security, whereas a put option conveys the right to sell an underlying security. Visit the "Equity Options Specification" link for equity option contract details. Equity Options Specification
Equity Options Symbol Lookup
Long-term Equity AnticiPation Securities (LEAPS) are long-term option contracts that allow investors to establish positions that can be maintained for a period of up to three years. Visit the "Equity Leaps Specification" link for equity option contract details. Equity Leaps Specification
Equity Leaps Symbol Lookup
Index Options & Leaps
An option whose underlying security is an index. If exercised, settlement is made by cash payment, since physical delivery is not possible.
Index Options & Leaps Symbol Lookup
Interest Rate Options
Interest rate Options are European-style, cash-settled options on the yield of U.S. Treasury securities. Available to meet your needs are options on short, medium, and long-term rates. These options give you an opportunity to invest based upon your views of the direction of interest rates.
In general, when yield-based options are purchased, a call buyer and a put buyer have opposite expectations about interest rate movements. A call buyer anticipates interest rates will go up, increasing the value of the call position. A put buyer anticipates that rates will go down, increasing the value of the put position. A yield-based call option buyer will profit if, by expiration, the underlying interest rate rises above the strike price plus the premium paid for the call. Alternatively, a yield-based put options buyer will profit if, by expiration, if the interest rate has declined below the strike price less the premium paid. Of course taxes and commissions must be taken into account in all transactions.