Basic option education part 22 contract specifications.

Discussion in 'Options' started by KINGOFSHORTS, Jan 27, 2012.

  1. Okay this is very important.

    1 contract of the standard American equity options will represent 100 shares of the actual stock.

    So if you have 100 shares of ge and you want to sell a covered call.

    You would do the following. Sell to open, choose quantity of 1 and there you go.

    You don't select 100
     
  2. FSU

    FSU

    Correct