How to Read Ticker Symbols for Options

What is an option ticker?

When it comes to trading options, understanding ticker symbols is fundamental. A ticker symbol is a unique combination of letters that represents a specific financial instrument, whether it's a stock, an exchange-traded fund (ETF), or an option. In this blog post, we'll dive into the world of option ticker symbols, breaking down their components, teaching you how to read them, exploring their history, and providing insights into reading call and put options. Let's get started!

Parts of an option ticker

Before we delve into how to read option ticker symbols, let's dissect the various parts that make up these symbols:

• Root Symbol: The root symbol is typically the first part of an option ticker and represents the underlying asset on which the option is based. For example, if you're looking at options for Apple Inc., the root symbol would be "AAPL."
  

• Expiration Date: The expiration date indicates when the option contract expires. It's represented by a series of characters, with the year, month, and day of the month included. For example, "20231217" represents an option expiring on December 17, 2023.
  

• Strike Price: The strike price, also known as the exercise price, specifies the price at which the option holder can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset. It's typically expressed as a decimal number.
  

• Call or Put Indicator: This part of the ticker symbol signifies whether the option is a call or a put. It's represented by a single letter: "C" for call options and "P" for put options.
• Additional Symbols: Some option ticker symbols may include additional characters to convey information about the option's type, style, or other characteristics.

How to read option ticker symbols

Understanding option ticker symbols may seem complex at first, but breaking it down into steps can make it more manageable. Here's how to read option ticker symbols:

Step 1: Identify the Root Symbol

The root symbol is the first part of the ticker and represents the underlying asset. It's usually easy to recognize, as it corresponds to the stock or ETF you're interested in. For example, if you're interested in Apple Inc., the root symbol is "AAPL."

Step 2: Decode the Expiration Date

The expiration date follows the root symbol and consists of numbers that indicate the year, month, and day of the month when the option expires. In the example "20231217," the option expires on December 17, 2023.

Step 3: Determine the Strike Price

The strike price comes after the expiration date and is typically a decimal number. It represents the price at which the option holder can buy (call option) or sell (put option) the underlying asset.

Step 4: Identify Call or Put

The final part of the ticker symbol is a single letter that signifies whether the option is a call or a put. "C" stands for call options, while "P" stands for put options.

Step 5: Check for Additional Symbols (if applicable)

Some option ticker symbols may include additional characters to convey specific information about the option, such as its type (e.g., American or European style), exercise style (e.g., European), or other unique features.

History of ticker symbols for stock options

The use of ticker symbols for stock options has a rich history that dates back to the early days of options trading. These symbols were developed to provide a concise and standardized way to identify options contracts. Over the years, they have evolved to accommodate the growing complexity of the options market.

Initially, option ticker symbols were relatively simple, consisting of just a few characters. However, as options trading expanded to encompass various strike prices and expiration dates, the ticker symbol format became more intricate. This evolution was necessary to ensure that each option contract could be uniquely identified.

How to read call and put options

Reading call and put options involves understanding the components of their ticker symbols:

Call Options

• Root Symbol: The root symbol represents the underlying asset. For example, "AAPL" for Apple Inc.
• Expiration Date: Indicates when the call option expires, expressed as a year, month, and day (e.g., "20231217" for December 17, 2023).
• Strike Price: Specifies the price at which the option holder can buy the underlying asset.
• Call Indicator: Designated by the letter "C," signifying it's a call option.

Example: AAPL231217C150 means a call option for Apple Inc. expiring on December 17, 2023, with a strike price of $150.

Put Options

• Root Symbol: Represents the underlying asset, such as "AAPL" for Apple Inc.
• Expiration Date: Shows when the put option expires, using the year, month, and day format (e.g., "20231217" for December 17, 2023).
• Strike Price: Specifies the price at which the option holder can sell the underlying asset.
• Put Indicator: Denoted by the letter "P," indicating it's a put option.

Example: AAPL231217P140 means a put option for Apple Inc. expiring on December 17, 2023, with a strike price of $140.

Where to get reliable options data

Accessing accurate and up-to-date options data is crucial for successful options trading and analysis. Intrinio offers a comprehensive platform for financial data, including options data, to help you make informed decisions. Here's how you can find reliable options data on the Intrinio platform:

• Create an Account: Begin by creating an account on the Intrinio platform. This just takes just a few seconds to do!
  

• Sign up for Options Data: Once logged in, you’ll need to decide whether you want to subscribe to real-time, delayed, or intra-day options data. From those webpages, you can request a free trial or purchase a subscription. Our team will get back to you by end of day!
  

• Query Options Data: Take a look at our documentation and how-to guides for details on pulling options data and ticker symbols for options via our API.
  

• Customize Your Data: Use Intrinio's API endpoints to tailor the options data and options tickers to fit your needs - we offer tons of endpoints and additional data sets that you can query and subscribe to.
  

• Real-Time Updates: Intrinio offers real-time updates, as soon as data is made publicly available, ensuring you have access to the latest liquidity data as it becomes available through the exchanges.
  

• Technical Support: If you have questions or need assistance, Intrinio provides technical support to help you make the most of their platform and data. Just chat our team at any time!

Reading ticker symbols for options may seem like deciphering a secret code, but with a clear understanding of the components and a step-by-step approach, it becomes a manageable task. Ticker symbols are a vital part of options trading, allowing you to identify and track specific option contracts.

By grasping the history of option ticker symbols, knowing how to read call and put options, and accessing reliable options data through platforms like Intrinio, you'll be well-equipped to navigate the world of options trading with confidence and precision. Happy trading!