1. Options Defined
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2. The Definition of an Option
Options – Contract between a buyer and seller of an underlying security that obligates the seller to either buy or sell a stock at a certain price within a certain time frame. The buyer of the option contract has the right to buy or sell the underlying stock during the same period of time.
What Does Options Contract Mean? One options contract represents one hundred shares in the underlying stock. The quoted price of an option is per share.

3. Understanding Option Chains
Strike Price - What Does Strike Price Mean? The price at which a specific derivative contract can be exercised. Strike prices are mostly used to describe stock and index options, in which strike prices are fixed in the contract. For call options, the strike price is where the security can be bought (up to the expiration date), while for put options the strike price is the price at which shares can be sold.   The difference between the underlying security's current market price and the option's strike price represents the amount of profit per share gained upon the exercise or the sale of the option. This is true for options that are in the money; the maximum amount that can be lost is the premium paid. Also known as the "exercise price".  

4. Option Chains

5. Option Chains

6. Option Chains

7. Option Chains

8. More Option Chain Definitions
Bid Price - What Does Bid Price Mean? The price a buyer is willing to pay for a security which you are trying to sell. It is the credit you will take in on a short option.
Ask Price – What Does Ask Price Mean? The price a seller is willing to accept for a security which you are trying to buy. It is the debit you will pay on a long option.

9. Option Chains

10. Other Important Option Information
Intrinsic Value - For call options, this is the difference between the underlying stock's price and the strike price. For put options, it is the difference between the strike price and the underlying stock's price. In the case of both puts and calls, if the respective difference value is negative, the intrinsic value is given as zero.
Extrinsic Value - The difference between an option's price and the intrinsic value.

11. Option Chains

12. Option Chains

13. Option Chains 71.27 – 67.50 = 3.77 (intrinsic value)
4.10 – 3.77 = 0.33 (extrinsic value)

14. Option Chains