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5 articles
Option Basics
What are the basics of an option contract?The four fundamental characteristics that make up an option contract are action, type, expiration, and strike price.
What are options Greeks?Options Greeks are sensitivity measures that describe how an option contract's price responds to changes in market conditions. OptiView displays Delta, Theta, Gamma, and Vega for each contract in the option chain and calculates net Greeks across all legs in the strategy overview panel.
What happens if I hold an option until expiration?Holding an option until expiration means the contract will either expire worthless, be exercised, or lead to assignment, depending on whether the option is in the money and on your broker’s rules.
What is early assignment in options trading?Early assignment happens when the holder of an option exercises before expiration, forcing the seller of that option to fulfill the contract early.
How do stock splits and dividends affect option contracts?Stock splits, special dividends, and other corporate actions can change option contract terms, historical prices, and how a strategy appears over time.