From OptionMonster Education:
The right, but not the obligation, to buy a specific number of shares of the underlying security at a defined price, until the expiration date.
The right, but not the obligation, to sell a specific number of shares of the underlying security at a defined price until the expiration date.
The price at which option holders can exercise their rights.
The process in which the buyer of an option takes, or makes, delivery of the underlying contract.
The process by which the seller of an option is notified that the contract has been exercised.
The time at which an option can no longer be exercised.
In the Money (ITM)
A call (put) option whose strike price is below (above) the stock price.
At the Money (ATM)
An option whose strike price is roughly equal to the stock price.
Out of the Money (OTM)
A call (put) option whose strike price is above (below) the stock price.
An option that can be exercised at any time before expiration
An option that can be exercised only at expiration. (Note: These are mainly index securities.)
The amount that an option is in the money.
The price of an option less the intrinsic value.
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