Options At the Money, In the Money, Out of the Money. When gauging the price of the options, these three terms — at the money, in the money and out of the money — will come into play. You can tell which options are which simply by looking at their strike prices (and the price of the underlying stock).
http://investorplace.com/2012/04/what-are-options-contracts/
When you purchase an options contract, you pay a premium for the privilege that goes along with holding that contract; you’re not paying for the full value of a stock. For instance, if you wanted to commit some of your investment capital to Google (GOOG), you’d be paying in the neighborhood of $625 a share.
http://investorplace.com/2012/04/what-are-options-contracts/
The Value of Options. The worth of a particular options contract to a buyer or seller is measured by its likelihood to meet their expectations. In the language of options, that's determined by whether or not the option is, or is likely to be, in-the-money or out-of-the-money at expiration.
https://www.optionseducation.org/getting_started/options_overview/what_is_an_option.html
An option is a contract to buy or sell a specific financial product known as the option's underlying instrument or underlying interest. For equity options, the underlying instrument is a stock, exchange traded fund (ETF) or similar product. The contract itself is very precise.
https://www.optionseducation.org/getting_started/options_overview/what_is_an_option.html
This option contract allows a buyer and seller to enter into a contract for the sale of goods or real property, but the sale is contingent upon certain terms, like a timeframe or an action.
http://study.com/academy/lesson/what-is-an-option-contract-example-definition.html
An option is “at the money” if the strike price is the same as the market price of the underlying security. For example, if Google is trading for $620 and you hold a January 620 option, you are “at the money” (whether you own a call or a put).
http://investorplace.com/2012/04/what-are-options-contracts/
A call option is in-the-money if the current market value of the underlying stock is above the exercise price of the option. The call option is out-of-the-money if the stock is below the exercise price. A put option is in-the-money if the current market value of the underlying stock is below the exercise price.
https://www.optionseducation.org/getting_started/options_overview/what_is_an_option.html
An option contract allows a buyer and seller to enter into a contract for the sale of goods or real property but the sale is contingent upon certain terms like a timeframe or an action. This type of contract contains the same elements as a regular contract, like:
http://study.com/academy/lesson/what-is-an-option-contract-example-definition.html
- Example & Definition. The difference between a contract and an option contract is in the options that a buyer has a right to exercise in the contract, which makes the contract a bit more flexible. Business 103: Introductory Business Law / Business Courses.
http://study.com/academy/lesson/what-is-an-option-contract-example-definition.html
A call option is “in the money” when the strike price is below the market price of the underlying stock. For a put option, it’s the opposite; a put is “in the money” when the strike price is above the market price of the underlying stock. For example, if you buy Google January 620 call options now and two weeks later Google is trading for $623.00, then you are in the money by $3.00.
http://investorplace.com/2012/04/what-are-options-contracts/
what is an options contract
An options contract is a contract to buy or sell a specific financial product. A contract to buy or sell a specific financial product known as the option's underlying instrument or underlying interest.