6.1 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.