Option symbol
Encyclopedia
An option symbol is a code by which options
are identified on a futures exchange
.
New standard is now fully in place, as in the first few months after February 12th the LEAP roots and additional roots needed to handle large amounts of options for a given issuer were consolidated into a single root ticker for a given underlying symbol. (see See Also section for more information)
This consists of a root symbol ('IBM') + month code ('A') + strike price
code ('F'). The root symbol is the symbol of the stock on the stock exchange. After this comes the month code, A-L mean January-December calls
, M-X mean January-December puts
. The strike price code is a letter corresponding with a certain strike price (which letter corresponds with which strike price depends on the stock). See the external link to investopedia for a chart of strike prices.
stocks. NASDAQ stock symbols are always a minimum of four letters, whereas the base symbol of an option is always three letters. These are mapped arbitrarily by the options authorities. So, for example, American Eagle Outfitters stock trades on NASDAQ under AEOS, but its options all begin with AQP. There is no rhyme or reason to this mapping, other than the alphabetical sequence is usually roughly consistent.
has moved hundreds of dollars per share in the last year, and as a result has many different symbols outstanding. For example, as of November 2005, the December 2005 options include GOQ (prices in the $100 range), GOU and GGD (prices in the $200 range), GOP (prices in the $500 range) and probably many others.
Option (finance)
In finance, an option is a derivative financial instrument that specifies a contract between two parties for a future transaction on an asset at a reference price. The buyer of the option gains the right, but not the obligation, to engage in that transaction, while the seller incurs the...
are identified on a futures exchange
Futures exchange
A futures exchange or futures market is a central financial exchange where people can trade standardized futures contracts; that is, a contract to buy specific quantities of a commodity or financial instrument at a specified price with delivery set at a specified time in the future. These types of...
.
(Explanation why this article is obsolete)
This article is obsolete, as of February 12th, 2010 when the five-character ticker format described in this article stopped being used in the US and Canada.New standard is now fully in place, as in the first few months after February 12th the LEAP roots and additional roots needed to handle large amounts of options for a given issuer were consolidated into a single root ticker for a given underlying symbol. (see See Also section for more information)
(Original article follows, to describe pre-Feb 12th 2010 symbology in case anyone is still interested in that)
In general
The ticker (trading) symbols for US options typically look like this: IBMAF.This consists of a root symbol ('IBM') + month code ('A') + strike price
Strike price
In options, the strike price is a key variable in a derivatives contract between two parties. Where the contract requires delivery of the underlying instrument, the trade will be at the strike price, regardless of the spot price of the underlying instrument at that time.Formally, the strike...
code ('F'). The root symbol is the symbol of the stock on the stock exchange. After this comes the month code, A-L mean January-December calls
Call option
A call option, often simply labeled a "call", is a financial contract between two parties, the buyer and the seller of this type of option. The buyer of the call option has the right, but not the obligation to buy an agreed quantity of a particular commodity or financial instrument from the seller...
, M-X mean January-December puts
Put option
A put or put option is a contract between two parties to exchange an asset, the underlying, at a specified price, the strike, by a predetermined date, the expiry or maturity...
. The strike price code is a letter corresponding with a certain strike price (which letter corresponds with which strike price depends on the stock). See the external link to investopedia for a chart of strike prices.
NASDAQ option symbols
There are many exceptions to this simple case. The main one is NASDAQNASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
stocks. NASDAQ stock symbols are always a minimum of four letters, whereas the base symbol of an option is always three letters. These are mapped arbitrarily by the options authorities. So, for example, American Eagle Outfitters stock trades on NASDAQ under AEOS, but its options all begin with AQP. There is no rhyme or reason to this mapping, other than the alphabetical sequence is usually roughly consistent.
NYSE/AMEX option symbols
For NYSE/AMEX stocks, the base symbol is ALWAYS the same as the symbol used on the stock exchange. The various stock exchanges have procedures in place to make sure consistent use of symbols, so IBM is always IBM Corporation, even if IBM is the NYSE's stock and AMEX really wants to give it to some other company with a similar name).LEAPS option symbols
Another big exception is LEAPS. Besides its 'regular' option series AQP, American Eagle also has 2007 LEAPS that trade under VXX, and 2008 LEAPS that trade under WXD. This basically overcomes the limitation that the 'expiry month letter' scheme does not contemplate the same month existing in different years.Additional symbols
Sometimes the price of a stock moves so rapidly that it runs out of 'strike price letters' and additional symbols are required to accommodate the new prices. GoogleGoogle
Google Inc. is an American multinational public corporation invested in Internet search, cloud computing, and advertising technologies. Google hosts and develops a number of Internet-based services and products, and generates profit primarily from advertising through its AdWords program...
has moved hundreds of dollars per share in the last year, and as a result has many different symbols outstanding. For example, as of November 2005, the December 2005 options include GOQ (prices in the $100 range), GOU and GGD (prices in the $200 range), GOP (prices in the $500 range) and probably many others.
See also
- Stock symbols
- Options Clearing CorporationOptions Clearing CorporationOptions Clearing Corporation or OCC, founded in 1973, is the world's largest equity derivatives clearing organization, providing central counterparty clearing and settlement services to 14 exchanges and platforms for options, financial and commodity futures, security futures and securities...
's Options Symbology Initiative (OSI), mandates an industrywide change to a new option symbol structure, resulting in option symbols up to 23 characters in length. Mandatory cutover to begin using explicit data elements is February 12, 2010. March 2010 - May 2010 will be the symbol consolidation period in which all outgoing option roots will be replaced with the underlying stock symbol. By June 2009, firms have to accept options data in new format. Symbology Initiative Overview.