Option symbol
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An option symbol is a code by which options are identified on a futures exchange.
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[edit] In general
The ticker (trading) symbols for US options typically look like this: IBMAF. This consists of a root symbol ('IBM') + month code ('A') + strike price code ('F'). The root symbol is the symbol of the stock on the stock exchange. After this comes the month code, A-L mean January-December calls, M-X mean January-December puts. The strike price code is a letter corresponding with a certain strike price (which letter corresponds with which strike price depends on the stock). See the external link to investopedia for a chart of strike prices.
[edit] NASDAQ option symbols
There are many exceptions to this simple case. The main one is NASDAQ stocks. NASDAQ stock symbols are always a minimum of four letters, whereas the base symbol of an option is always three letters. These are mapped arbitrarily by the options authorities. So, for example, American Eagle Outfitters stock trades on NASDAQ under AEOS, but its options all begin with AQP. There is no rhyme or reason to this mapping, other than the alphabetical sequence is usually roughly consistent.
[edit] NYSE/AMEX option symbols
For NYSE/AMEX stocks, the base symbol is ALWAYS the same as the symbol used on the stock exchange. The various stock exchanges have procedures in place to make sure consistent use of symbols, so IBM is always IBM Corporation, even if IBM is the NYSE's stock and AMEX really wants to give it to some other company with a similar name).
[edit] LEAPS option symbols
Another big exception is LEAPS. Besides its 'regular' option series AQP, American Eagle also has 2007 LEAPS that trade under VXX, and 2008 LEAPS that trade under WXD. This basically overcomes the limitation that the 'expiry month letter' scheme does not contemplate the same month existing in different years.
[edit] Additional symbols
Sometimes the price of a stock moves so rapidly that it runs out of 'strike price letters' and additional symbols are required to accommodate the new prices. Google has moved hundreds of dollars per share in the last year, and as a result has many different symbols outstanding. For example, as of November 2005, the December 2005 options include GOQ (prices in the $100 range), GOU and GGD (prices in the $200 range), GOP (prices in the $500 range) and probably many others.
