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This chapter is from the book

Notation Standard for the Examples

As we go through several trade examples, I use the following notation standard when referring to the options.

  • Expiration month | strike price | call or put
  • December | 40 | call
  • July | 30 | put
  • December 40 call—A call with a strike price of $40, which expires in December
  • July 30 put—A put with a strike price of $30, which expires in July

Sometimes I include the word strike as follows:

  • December 40 strike call—A call with a strike price of $40, which expires in December
  • July 30 strike put—A put with a strike price of $30, which expires in July

Strike prices and option premiums are notated without the dollar symbol ($) sign.

Stock prices and real dollar amounts are generally notated with the $ sign unless they are part of a formula.

Breakeven figures and nominal risk or reward figures are notated without the $ sign.

Where appropriate, strategy names and jargon are depicted in lowercase. This is the contemporary way.

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