Back To Optiontradingpedia.com Answers
What Is Contract Range?
Question By Chaz

What Is Contract Range?

What does the term "contract range" mean in options trading?

Asked on 16 January 2009

explosive option trading mentor Star Trading System Training Course
Find Out How My Students Make Money Consistently Through Options Trading In The US Market Even During An Economic Downturn!


Answered by Mr. OppiE

Hi Chaz,

Contract range in options trading is the difference in the highest and lowest price a particular options contract has filled at within a specific period of time. It gives you an idea as to how wide a range the particular options contract has traded in. For example, If XYZ company's January $50 Call Options has filled at $1.80, $2.50, $3.50, $1.50, then its contract range is $3.50 - $1.50 = $2.00.

Contract range is not a piece of information most options traders require, especially retail options traders, because stock options are derivatives that moves as its underlying stock moves. It's price does not move only when it is being traded. This means that the highest and lowest possible price for that options contract may actually be wider than its contract range. Contract range is most applicable in other financial instruments such as Range Forward Contracts in currency trading.


In conclusion, if there is any other options terms that you may wish to know the meaning to, please refer to our Options Trading Glossary.



Response by Chaz...





Response by Others...




Add Your Response Here





Continue your journey of discovery...
Click Me For Content Index
Click Above For Content Index

Have a Suggestion?

Differences Between Forex and Options
Stock Options
Options Trading


Back To Answers Main | Go To Option Trader's HQ

 


Important Disclaimer: Options involve risk and are not suitable for all investors. Data and information is provided for informational purposes only, and is not intended for trading purposes. Neither optiontradingpedia.com, mastersoequity.com nor any of its data or content providers shall be liable for any errors, omissions, or delays in the content, or for any actions taken in reliance thereon. Data is deemed accurate but is not warranted or guaranteed. optiontradinpedia.com and mastersoequity.com are not a registered broker-dealer and does not endorse or recommend the services of any brokerage company. The brokerage company you select is solely responsible for its services to you. By accessing, viewing, or using this site in any way, you agree to be bound by the above conditions and disclaimers found on this site.

Copyright Warning: All contents and information presented here in optiontradingpedia.com are property of Optiontradingpedia.com and are not to be copied, redistributed or downloaded in any ways unless in accordance with our quoting policy. We have a comprehensive system to detect plagiarism and will take legal action against any individuals, websites or companies involved. We Take Our Copyright VERY Seriously!

Site Authored by