If You Want to Trade....
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Option prices are available at several Internet sites, including The Times’ site at http://fonts.nohib.com/quote, and are listed in specialized daily financial publications like Investor’s Business Daily and the Wall Street Journal. S&P; options are listed under Index Options, with calls listed first, followed by puts.
When you call your broker and ask to buy an OEX February 700 put, he or she may tell you the bid at that strike price is $8.25 and the ask is $8.63. If you’re buying one contract, you’ll probably get the ask, or offer, price. The commission at discount brokers could range from $35 to $80.
Unlike actual shares in a company, you cannot get a stock certificate. The brokerage just holds the contract in your account.
Options expire on the third Friday of each month. If the market has met half of your expectations and you want to sell early, call your broker and ask him or her to sell it at the market price, or set a limit price that you desire.
Note that options prices are extremely volatile. They can rise and fall 20% to 30% in a day.
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