In order to administer stock options trading, there are symbols which need to be known called the stock options symbols. Knowing those symbols is very important to determine the strategy which is used to gain profit in the trading floor.
There are some changes which are made in stock options trading market. Those signs and symbols changes are designed to help traders to be able to operate their trading more conveniently and systematically. The symbols which are used today are symbols which are universal, meaning that the symbols are used by stock options traders in all over the world. Thus it is important for you to know those stock options symbols changes in order to be able to continue trading at stock option trading floor.
The 21-character of stock options symbols being spearheaded by the Options Clearing Corp. According to the OCC, of the maximum 21 characters in the new code, the first six characters will represent an option contract’s symbol; two characters each for the maturity day, month and year; one for the call or put indicator; five for the strike dollar; and three for the strike price.
Today, listed options are named using as many as five characters. Of those five, three characters indicate the root symbol for the option and two characters identify the expiration month, whether it’s a put or a call and the strike price for the option. Stock option symbols hold the key of stock options trading that every party involved in stock options trading need to know about these changes news.
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