A stock option is a contract that gives you the right to buy or sell a stock at a certain price in the future. Stock options can be used to hedge against potential losses in your portfolio.

However, because options on that same $500 stock have very different strikes, they also have very different prices. For example: A $475 call will already be $25 in the money, its extrinsic value ...

"When you exercise your options and buy the stock for $1, you get a share certificate that says 'Congrats, you have a share certificate that's worth, in today's price, $5 per share,'" explains Davda.

Option Chain is currently not available ... investors can rely on the chain to gauge the stock's performance, monitor its activity, and see prices changes when making an investment decision.