Underlying
The financial asset (stock, ETF, index) on which an options contract is based.
Explanation
Example
For AAPL options, Apple Inc. stock is the underlying. If AAPL stock moves from $150 to $155, all AAPL options are affected.
The financial asset (stock, ETF, index) on which an options contract is based.
For AAPL options, Apple Inc. stock is the underlying. If AAPL stock moves from $150 to $155, all AAPL options are affected.