: The market price you pay to buy an option or receive when selling one.
: One standard contract represents 100 shares of the underlying stock.
: You buy these if you expect the stock price to rise . They give you the right to buy the stock at the strike price.
: The fixed price at which the stock can be bought or sold if the option is exercised.
: You buy these if you expect the stock price to fall . They give you the right to sell the stock at the strike price. How to Get Started