What is underlying?Underlying
The asset an option contract is based on, such as a particular stock.
Learn “underlying” in an animated lesson
- Options BasicsStrike, Premium and Expiration
Take apart an option contract and see what's written on it: underlying, type, strike price, expiration date, premium and multiplier.
- Options BasicsWhat Is an Option?
Pay a small amount now for the right to buy (or sell) at an agreed price later. Think of it like a deposit on a house.
Related terms
See how “underlying” works for yourself with an animation you can drag and play.
Go to “Strike, Premium and Expiration”