Contract Size

Yes, size matters.

When you buy an options contract, you want to know just how much of the underlying asset you’d be purchasing (calls) or selling (puts) should you execute the trade after expiration. The contract size is this physical amount of a commodity, number of shares, or other unit of trade.

For example, if you buy a call on shares of Apple, you’d have the right at expiration to buy 100 shares of the stock at the strike price. That’s easy, and just requires you to take ownership of stock.

But buy a call on 10 contracts of gold, and you might have to take delivery on 1,000 Troy ounces (100*10) once the option expires. Hope you’ve got a big safe.