Back Months

These are the Options with the most time left until expiration. Or, simply, the most distant expiration months. As you can see in the image below, the Jan 2024 and…

Automatic Exercise

Options with intrinsic value, or in-the-money options, are automatically exercised at expiration so that option holders don’t inadvertently leave money on the table. Since June 2008 , all options that…

Assignment 

When an option seller or writer receives an exercise notice, assignment has occurred. When assigned, writers must deliver the goods (shares or cash). For example, let's say you sold 1…

Ask Definition

This is also known as the offer. The asking price is the current market price at which an investor can buy the option in the market. 

American Style Option

This is an options contract, put or call, that can be exercised at any time prior to expiration. Stock, exchange-traded funds, and some index options also settle American-style. The alternative…