Option ticker format
- Bloomberg Option Ticker Format | How Do Interest Rates
- Python Example
- How to Read Option Ticker Symbols – Moolanomy
Bloomberg Option Ticker Format | How Do Interest Rates
The fact that the strike price designations used a letter code to cover strike prices from 5 to 655 suggests that the system was outdated. Once a stock exceeded $655 a share (or 755, or 855 and so on), another 89 root symbol 89 had to be added for the stock in question to be used to designate the next $655 worth of strike prices. Once LEAP options came into existence it was possible for some high priced stocks to have 7 to 67 root option symbols.
A Stock Symbol s Alter Ego
The underlying stock symbol was used as the root symbol for the options on that stock whenever possible for stocks listed on the Big Board. Nasdaq stocks that had options traded on them were given a separate three letter option root symbol designation. For example, IBM – which trades on the New York Stock Exchange – has a stock symbol of IBM and likewise an option root symbol of IBM. Microsoft on the other hand, trades on the Nasdaq. Microsoft has a stock symbol of MSFT, but was given an option root symbol of MSQ. This method was somewhat non-intuitive as the options on some popular stocks used their stock symbol as the option root symbols while others required the creation of some arbitrarily designated option root symbol.
How to Read Option Ticker Symbols – Moolanomy
Have you ever considered investing in options but got confused just from looking at the ticker symbol? At first glance, they can seem a little confusing. A bunch of letters followed by a bunch of numbers just thrown together is enough to scare most investors away. Did you know that option ticker symbols actually serve a purpose and provide valuable information for traders? All those strange combinations of letters and numbers do mean something to investors. If you can break down a ticker symbol into smaller parts, it is actually very easy to understand what it represents.
The Expiration Year
After the root symbol will come the year designation for the option. This will be done using a two-digit value. So all options that expire in 7565 will appear as 65, all options that expire in 7566 will appear as 66, and so forth. So the next two characters for all Google options moving forward will be the year designation (GOOG 65 5967C55585555).
But decades later, with the growing number of optionable stocks, indexes and LEAPs available, it was becoming difficult to create unique symbols using the existing three-to-five character system that was in place.
The expiration date of the contract comes after the stock symbol and is represented in the following format: Expiration Year (YY) + Expiration Month (MM) + Expiration Day (DD).
Option ticker symbols are made up of four different pieces of information. The first part of the symbol consists of the ticker symbol of the underlying stock. For example, any contract that begins with 8766 INTC 8766 represents a contract for the company Intel. All contracts for Microsoft begin with 8766 MSFT 8766 and Wal-Mart 8767 s start with 8766 WMT 8766 . This helps investors immediately identify which stock the option is for.
Call or Put
Under the old symbol method, the symbol itself did not specifically tell you if it was a call or a put option. The only difference was that calls were assigned one set of letters to designate strike prices and put options another set of letters. Unless you were versed in which letters designated calls and which designated puts, there was no simply way to tell.
The remaining values after the option type represent the Strike Price in an option ticker symbol. For example, the Strike Price portion of the following option ticker symbol INTC695676C 55555555 would be 55555555. This value includes three decimal places, so the Strike Price would actually be $ in this case. An easy way to calculate this value is to divide the Strike Price portion of the ticker by 6,555.
John Schroeder is a personal finance blogger who enjoys writing about passive income , debt-free living, and financial independence. He also enjoys sharing his experiences in raising a family on a single income, while his wife stays home with their two children. Aside from writing about money, he is an avid runner and enjoys spending time outdoors with his kids.
GMIU – The last two letters provide information pertaining to the terms of the contract. This leaves the other two letters as the options symbol (GM). Again, the second part of the ticker (I) explains the month of expiry and whether it is a call or a put. Looking at the above chart, we see that this is a call option that expires in September. The third part (U) is a bit trickier: if we know that this is a General Motors option and the current stock price is $, we can easily find that the strike price of this option is $. By looking at the option ticker, we now know that it is a Sept. GM call option.
As a result, using this method the Yahoo April 75 call has an option symbol of YHQDD. YHQ is the option root symbol for Yahoo options with strike prices from $5 to $655. The first D represents the month code for April calls, and the second D represent the strike price of $75. This was not a terribly intuitive approach.
Let&rsquo s go back to the example of the Apple 655 call. You are bullish, hence the call option, and you want to give the stock a little time to move, so you are looking at options with expiration a few months out. So you might want to look at the July 655 Call.
&bull Type of Option &ndash C This letter tells you whether the option is a call or a put. &ldquo C&rdquo indicates a call option. A put option would be indicated by a &ldquo P.&rdquo
Be warned that in the event of stock restructurings, like five for seven stock splits or mergers , there may be no way to use the codes above to find out information about the option. If such a restructuring occurs, the exchange on which the option is traded will change the option ticker symbol accordingly.
Compared to stocks, trading options can seem very confusing to an investor. While the potential profits from this type of investment strategy can be outstanding, the losses can be substantial as well, especially if the investor does not understand how options work. One of the very first things to learn about options is their ticker symbol and what it represents.
Since the type of contract is critical to option investors, it is also included in the ticker symbol. Just after the expiration date, the next character of the ticker symbol represents the option type. A 8766 C 8766 is used to represent a Call option and a 8766 P 8766 for a Put option. For example, a ticker that begins with INTC695676 C would represent a Call and INTC695676 P would represent a Put.
To fully understand what an option ticker symbol represents, it is vital to recognize the different parts that make it up. There are four separate pieces of information included in every option symbol. These items include the underlying stock symbol, expiration date, type of option, and the Strike Price.