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Options Guide

Options Glossary Illustrated

Here are some of the options basics you might be interested in when trading and investing.


What Are Options?   1:39

The Options Industry Council’s (OIC) Options Glossary Illustrated is an ongoing video series that brings basic options concepts to life in quick, easy-to-understand clips. This first entry in the series answers one of the most basic of questions: Just what are options?

In-, At- and Out-of-the-Money   2:07

OIC’s Options Glossary Illustrated is an ongoing video series that brings basic options concepts to life in quick, easy-to-understand clips. This second video takes a look at what it means to be in-the-money, at-the-money and out-of-the-money.

What is Assignment?   0:57

OIC’s Options Glossary Illustrated is an ongoing video series that brings basic options concepts to life in quick, easy-to-understand clips. In this third example, we’ll go over the idea of assignment, or what happens when an option holder exercises that option.

Strike Price   0:53

OIC’s Options Glossary Illustrated is an ongoing video series that brings basic options concepts to life in quick, easy-to-understand clips. Our fourth entry deals with the strike price—also called the exercise price—of an options contract.

Pricing Inputs   1:27

OIC’s Options Glossary Illustrated is an ongoing video series that brings basic options concepts to life in quick, easy-to-understand clips. Our fifth segment will take a look at factors that affect equity option prices.

Long Equity   1:50

OIC’s Options Glossary Illustrated is an ongoing video series that brings basic options concepts to life in quick, easy-to-understand clips. This segment deals with the concept of long equity and what it means to have a long equity call or long equity put position.

Expiration   1:25

OIC’s Options Glossary Illustrated is an ongoing video series that brings basic options concepts to life in quick, easy-to-understand clips. In this video, we’ll go over the topic of equity option expiration.


Interested in learning more options basics? Listen to our Beginner I Podcast that covers option trading tips. To open your options account, get started on Firstrade today!

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