An options order contains more information than a stock order. Follow this example to learn what's similar to and what's different from a stock trade order.
Buy to open 1 January 22, 2023, XYZ 70 call at 3.25
| Buy | Like a stock trade, this is the action. |
| To open | Not like a stock trade, this indicates a new position ("to close" indicates that an existing position is being eliminated). |
| 1 | Similar to a stock trade, but different. This indicates the number of contracts being traded (not the number of shares). |
| January 22, 2023 | Not like a stock trade, this is the expiration date; the date at which the option and its rights no longer exist. |
| XYZ | Similar to a stock trade, but different. This is the "underlying," which is usually 100 shares of XYZ stock. |
| 70 | Not like a stock trade, this is the strike price; the price at which the stock is traded if an option is exercised. |
| Call | Not like a stock trade, this is the type of option. There are also put options. |
| At 3.25 | Like a stock, this is the price per share of the option. Since the underlying is 100 shares, the total dollar cost is $325 plus commissions. |