Hello, again. OptionsANIMAL, Casey Jensen here. Now we're talking about an options chain. What is an options chain? If you're brand new to options, you're wondering, "I don't know what all of this is right here." We're going to talk about that, and I'll break it down, so it's easy for you to understand.
An options chain, again, keep in mind, options are so flexible. You need two people to agree upon a strike price. So an options chain is going to have everything when it comes to how options are. Price, so what does it mean that this is $2.00 per contract for a call option, to buy a call option at strike price 95? I put some squiggly lines over here just to represent that there are some complicated things that go into the pricing of these options that we'll cover in future classes that really ... It's not that complicated. You can learn. It just takes a little bit of time.
An options chain, again, keep in mind, calls are always over here on the left. That will never change. Puts are always over here on the right, and that will also never change. So that breaks it down a little bit for you. Remember that strike prices, they can go up. In this case, they may be 120, and all the way down to 50. They're flexible. I just put three here, to keep it simple. You have the right to buy a call option at whatever strike price you want. Again, that's the easy way to understand an options chain. It's just showing you all the possibilities of options.