Contract Size (Options)

Contract Size (Options)

Definition
In options trading, the standardized number of shares of the underlying stock that a single options contract controls (typically 100 shares).

Example
One Apple (AAPL) call option contract gives the right to buy 100 shares of AAPL.

Key Points

  • Value per Point: Understanding the contract size is crucial for calculating the dollar value of potential gains or losses in the underlying asset.

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