The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer the question, “Are option contracts always 100 shares?” The idea behind this question of wondering if option contracts are always 100 shares is basically talking about the option contract multiplier and how many shares an options contract typically controls because remember, options contracts are not a position in the underlying stock, but yet, they control shares of the underlying stock or potential shares of the underlying stock. Now, while most traditional option contracts do control 100 shares of the underlying stock or ETF or security, that doesn't mean that it's always the case and you should absolutely check the specific product that you’re trading to make sure. With the introduction of mini options in the recent years, we’ve seen that actually, some option contracts control as little as just 10 shares for higher-priced and more liquid securities, things like Apple, Google, Amazon, e