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How do I read an option quote?

An option quote will usually show the following information:

* Last - Indicates the time and price of an options' last trade.

* Change - The change in price for the day. The difference between the last trade and the previous day's last trade. An "0" is reported if the option didn't traded or if there is no reported price change.

* Bid - The highest price anybody is willing to pay for an option contract.

* Ask - The lowest price anybody is willing to receive for the options contract.

* Volume - Displays the number of option contracts that have traded for the current day.

* Open Interest - The total number of options contracts traded that are not closed or delivered on a particular day.

* Strike Price - The stated price per share at which the underlying stock can be bought (for calls) or sold (for puts) by the option holder when exercising the option contract.

* Open - Opening price of the first trade of the day.

* Day's Range - The high and low prices of the most recent trading day.

* Expiration Date - The day on which an option expires and ceases to exist. For stock options in the U.S., this is the third Friday of the expiration month (when it falls on a holiday, it will expire on Thursday).


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