---
title: "Option Market Data Fields Introductions"
description: "Below are the key elements and indicators used in options trading. Understanding these will help you better interpret option contracts and market data.Contract Elements of OptionsOptions come in two types:Call OptionsandPut Options.Apart from direction, each option contract consists of the following core components:1. Strike PriceThe predetermined transaction price of the underlying asset that applies when the option"
slug: "ineq5l"
locale: "en"
region: "sg"
region_label: "Singapore"
url: "https://longbridge.com/sg/en/support/topics/marketoverview/ineq5l.md"
updated_at: "2025-12-11T05:40:43.000Z"
category: "marketoverview"
category_title: "Market overview"
references:
  related:
    - title: "Options Quotes and Trading in Extended Hours "
      url: "https://longbridge.com/sg/en/support/topics/marketoverview/2480z3.md"
    - title: "Option Trading Statistics"
      url: "https://longbridge.com/sg/en/support/topics/marketoverview/hrdvqx.md"
---

# Option Market Data Fields Introductions

[Table of Contents](https://longbridge.com/sg/en/support/toc.md)

Below are the key elements and indicators used in options trading. Understanding these will help you better interpret option contracts and market data.

## Contract Elements of Options

Options come in two types: **Call Options** and **Put Options**.

Apart from direction, each option contract consists of the following core components:

### 1\. Strike Price

The predetermined transaction price of the underlying asset that applies when the option buyer decides to exercise the contract.

### 2\. Expiry Date

The contract’s expiration date.

Options lose value over time and **expire** after this date.

-   In the U.S. market, regular stock options usually expire **every Friday (except when the market is closed—then expiration moves to Thursday).**
-   Monthly options expire on the **third Friday** of each month.
-   Index options may have **mid-week expirations** in addition to Friday expiries.

**American-style options** → Can be exercised **any time before expiry**

**European-style options** → Can be exercised **only on the expiry date**

### 3\. Contract Multiplier

The multiplier used to determine the contract’s total value based on the strike price.

Example:

If the multiplier = **100**, and the strike price = **20** →

Contract value = **100 × 20 = 2,000**

### 4\. Contract Size

The actual quantity of the underlying asset each option contract represents.

Typically **1 option = 100 shares**, unless adjusted due to corporate actions.

Example:

Option premium = **0.50**

Contract size = **100**

Total premium = **0.50 × 100 = 50**

## Option Indicators and Greeks

Option Greeks measure how option prices react to changes in market conditions.

### 1\. Implied Volatility (IV)

The market’s expectation of the underlying asset’s future volatility.

IV is derived by inputting the option’s market price into a pricing model (commonly the **Black-Scholes model**).

### 2\. Delta

Measures how much the option price changes when the underlying asset moves by one unit.

Example:

Delta = 0.50 → If the underlying rises by $1, the option price increases by ~$0.50.

### 3\. Gamma

Measures how much **Delta** changes when the underlying asset moves by one unit.

Gamma reflects the sensitivity of Delta.

### 4\. Theta

Measures **time decay** — how much the option price decreases as one day passes, assuming all else stays constant.

### 5\. Vega

Measures how much the option price changes when the underlying asset’s volatility increases by **1%**.

### 6\. Rho

Measures how much the option price changes when the **risk-free interest rate** changes by **1%**.

**Disclosures**

*This article is for reference only and does not constitute any investment advice.*

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice. Content provided by [Longbridge](https://longbridge.com).