Trade Options on
CFI Multi-Asset

Equity options (options on stocks) trade during normal stock market hours. This is typically 9:30 a.m. to 4 p.m. EST.

There are 2 types of options - Call Options and Put Options.

Call Options give you the right, but not the obligation, to buy an option contract. Meanwhile, Put Options give you the right, but not the obligation, to sell an option contract.

The Strike price, also called as purchase price, is the price at which the underlying instrument of a particular option can be purchased. For a call option, it is the price at which the underlying instrument can be bought, while for a put option, it is the price at which the underlying instrument can be sold.

The expiry date of an option is the date on which the option contract becomes invalid or ceases to exist. It is the last day on which the option holder can exercise their right to buy or sell the underlying asset. After the expiry date, the option is no longer valid, and any rights associated with it expire.

The main difference between American and European-style options is the exercise timing. American options can be exercised at any time before or at expiration, allowing for early exercise. In contrast, European options can only be exercised at the expiration date, with no provision for early exercise.

Option Greeks are a set of parameters used to measure the sensitivity of option prices to various factors. They help traders assess and manage the risks associated with options positions. The main Option Greeks are:

Delta (Δ), Gamma (Γ), Theta (Θ), Vega (ν), Rho (ρ)

Option Greeks are crucial for option traders as they provide insights into how changes in underlying price, time, volatility, and interest rates can affect options. Traders use these metrics to make informed decisions, manage risks, and develop strategic positions in the options market.