Skip to content
  • There are no suggestions because the search field is empty.

Option terms Call, Put, Underlying

Underlying Asset

The underlying asset is the financial instrument upon which an option is based. Common underlying assets include:

  • Stocks
  • Exchange-traded funds (ETFs)
  • Indexes
  • Futures contracts

          The value of an option is directly influenced by changes in the price of the underlying asset.

           

          Call Option

          A call option gives the buyer the right (but not the obligation) to buy the underlying asset at the strike price before or at expiration.

          • Call Buyer: Has the right to purchase the underlying asset
          • Call Seller (Writer): Has the obligation to sell the underlying asset if the option is exercised or assigned

           

          Put Option

          A put option gives the buyer the right (but not the obligation) to sell the underlying asset at the strike price before or at expiration.

          • Put Buyer: Has the right to sell the underlying asset
          • Put Seller (Writer): Has the obligation to buy the underlying asset if the option is exercised or assigned

              Securities products and services are offered through GigaTrade Brokerage, LLC a registered broker-dealer, member FINRA. To the extent applicable to commodity interest or futures-related activities, products and services are offered through GigaTrade Trading, LLC an NFA Member and subject to CFTC oversight. This communication is for informational purposes only and is not an offer to sell, a solicitation to buy, or a recommendation of any security, futures product, swap, commodity interest, or investment strategy in any jurisdiction where such offer, solicitation, or recommendation would be unlawful. All information is believed to be reliable, but is not guaranteed as to accuracy, completeness, or timeliness. Any views or opinions expressed are subject to change without notice. Investing and trading involve risk, including possible loss of principal and, where applicable, losses in excess of initial margin. Past performance is not indicative of future results. Any examples, illustrations, market commentary, or strategy discussions are provided for educational purposes only and do not reflect actual or expected performance. Products and services may be offered through separate affiliated entities. Not all products and services are available to all clients or in all jurisdictions. Please carefully review all offering, account, and risk disclosure documents before investing or trading. For information about GigaTrade Brokerage, LLC and its registered representatives, visit BrokerCheck. For futures and commodity-related registration and background information for GigaTrade Trading, LLC, visit NFA BASIC. Electronic communications may be reviewed, retained, and archived in accordance with applicable law and firm policies. Any message transmitted by email is intended only for the named recipient(s) and may contain confidential information. If you received it in error, please notify the sender and delete it. This communication does not constitute legal, tax, or accounting advice. Please consult your own professional advisers regarding your individual circumstances. GigaTrade Brokerage, LLC and GigaTrade Trading, LLC are separate via segregated client funds and affiliated entities via ownership and management.