What is an options multiplier?
Each and every option is assigned a ?multiplier.? The multiplier is normally based on an equivalency to the particular underlying. It is the deliverable quantity of commodities or financial instruments underlying shares. The contract size is standardized for such futures and options contracts, and varies depending on the commodity or instrument that is traded. The contract size also determines the dollar value of a unit move in the underlying commodity or instrument.?
To learn more:
Options Bootcamp 30: Back to School, Back to Basics
The Advisor’s Option Premiere Episode: Spreading the Gospel of Options