This article focus to Explain the Basic Specifications of Stock Options. Before a beginner knows about the definitions and meanings of the very fundamental terminologies associated with commodity, it is crucial to revive the basic definition of trading stock options. The next term to know about is ‘strike price’, which signifies the stock price in the particular option or tool, which is to always be bought or sold, on the onset of the cope. The relation between the strike price as well as the market value of the asset under consideration, determines the option’s premium as well as trading value.