Option naming convention

In financial markets, an option naming convention is a method of identifying which of many possible options is being quoted or traded.

Standard convention

In North America the usual naming convention is as follows:

An option code looks like this: SLW150515C19 This is a call option on SLW

Stock option names are written in the following format: SYMBOL+MONTH+STRIKE

Expiration Month Codes

Month Call Put
January A M
February B N
March C O
April D P
May E Q
June F R
July G S
August H T
September I U
October J V
November K W
December L X

Strike Price Codes

Code Strike Prices Code Strike Prices
A 5 105 205 305 405 505 N 70 175 270 370 470 570
B 10 110 210 310 410 510 O 75 175 275 375 475 575
C 15 115 215 315 415 515 P 80 180 280 380 480 580
D 20 120 220 320 420 520 Q 85 185 285 385 485 585
E 25 125 225 325 425 525 R 90 190 290 390 490 590
F 30 130 230 330 430 530 S 95 195 295 395 495 595
G 35 135 235 335 435 535 T 100 200 300 400 500 600
H 40 140 240 340 440 540 U 7.5 37.5 67.5 97.5 127.5 157.5
I 45 145 245 345 445 545 V 12.5 42.5 72.5 102.5 132.5 162.5
J 50 150 250 350 450 550 W 17.5 47.5 77.5 107.5 137.5 167.5
K 55 155 255 355 455 555 X 22.5 52.5 82.5 112.5 142.5 172.5
L 60 160 260 360 460 560 Y 27.5 57.5 87.5 117.5 147.5 177.5
M 65 165 265 365 465 565 Z 32.5 62.5 92.5 122.5 152.5 182.5

Proposed revision

For US options, a new initiative, led by the Options Clearing Corporation, has been tasked with developing a new symbology for exchange traded options.[1] The proposed revision is meant to address several deficiencies with the standard convention described above. In particular:[1]

The new symbology will do away with the letter codes for strike and expiration, and instead employ a 21-byte series key with the following fields:[2]

All options that settle into the same underlier (e.g. 100 shares of the underlier) will share the same symbol field.[2]

Rollout of the new symbology convention is planned for 2009.[2]

References

  1. 1 2 "Symbology Initiative". Options Clearing Corporation. Retrieved 2007-06-04.
  2. 1 2 3 "Options Symbology Initiative" (PDF). Options Clearing Corporation. Retrieved 2007-06-04.
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