30.1 Introduction

Options have specific characteristics that are important to understand before you start using them. As mentioned before, options always have a specified contract size, in general, 100 units of shares or 100 x the index.  

In this chapter, we teach you;

• How to read options
• What they look like in your portfolio
• What in-at or out of the money means 
• The difference between physical delivery and cash settlement.