Options Trader Glossary

A

• Albatross Spread in Options Trading
• All Or None Order in Options Trading
• American option in Options Trading
• American Style Option in Options Trading
• American-style option in Options Trading
• Approval Levels in Options Trading
• Arbitrage in Options Trading
• Arbitrage Trading Strategies in Options Trading
• Ask in Options Trading
• Ask price in Options Trading
• Ask spread in Options Trading
• Asset Price on Purchase of Options in Options Trading
• Assignment fee in Options Trading
• Assignment in Options Trading
• Assignment risk in Options Trading
• At the Money Option in Options Trading
• At-the-bid (ATB) in Options Trading
• At-the-money (ATM) in Options Trading
• Auto Trading in Options Trading
• Autocallable in Options Trading
• Automatic Exercise in Options Trading

B

• Backspread in Options Trading
• Barrier option in Options Trading
• Basic Option Strategies in Options Trading
• Basket Option in Options Trading
• Bear Butterfly Spread in Options Trading
• Bear call spread in Options Trading
• Bear Market in Options Trading
• Bear Put Ladder Spread in Options Trading
• Bear put spread in Options Trading
• Bear Ratio Spread in Options Trading
• Bear Spread in Options Trading
• Bear Spread with Call in Options Trading
• Bear Spread with Puts in Options Trading
• Bear Trap in Options Trading
• Bearish in Options Trading
• Bearish Trading Strategies in Options Trading
• Beta in Options Trading
• Bid Ask Spread in Options Trading
• Bid in Options Trading
• Bid price in Options Trading
• Binary Option in Options Trading
• Binomial Model of Option Pricing in Options Trading
• Binomial Multiple Period Model in Options Trading
• Binomial Options Pricing Model in Options Trading
• Black Scholes Options Pricing Model in Options Trading
• Black-Scholes model in Options Trading
• Black-Scholes Option Pricing Model in Options Trading
• Box spread in Options Trading
• Break Even Point in Options Trading
• Break-even point in Options Trading
• Breakout in Options Trading
• Broker Commissions in Options Trading
• Broker in Options Trading
• Bull Butterfly Spread in Options Trading
• Bull Call Ladder Spread in Options Trading
• Bull call spread in Options Trading
• Bull Condor Spread in Options Trading
• Bull Market in Options Trading
• Bull put spread in Options Trading
• Bull Spread in Options Trading
• Bull Trap in Options Trading
• Bullish in Options Trading
• Bullish Trading Strategies in Options Trading
• Butterfly spread in Options Trading
• Buy to Close Order in Options Trading
• Buy To Open Order in Options Trading
• Buy-write in Options Trading
• Buying Put Option in Options Trading

C

• Calendar Call Spread in Options Trading
• Calendar Put Spread in Options Trading
• Calendar spread in Options Trading
• Calendar Straddle in Options Trading
• Calendar Strangle in Options Trading
• Call in Options Trading
• Call option in Options Trading
• Call option writer in Options Trading
• Call Ratio Backspread in Options Trading
• Call Ratio Spread in Options Trading
• Call spread in Options Trading
• Called Away in Options Trading
• Capital gain in Options Trading
• Capital loss in Options Trading
• Carrying Cost in Options Trading
• Cash Settled Option in Options Trading
• Cash-secured put in Options Trading
• Cash-settled option in Options Trading
• CBOE in Options Trading
• Chain in Options Trading
• Chain sheet in Options Trading
• Change in Options Trading
• Chooser Option in Options Trading
• Churn in Options Trading
• Close in Options Trading
• Closing Order in Options Trading
• Closing purchase transaction in Options Trading
• Closing sale transaction in Options Trading
• Collar in Options Trading
• Combination Order in Options Trading
• Commodity Option in Options Trading
• Compound in Options Trading
• Condor Spread in Options Trading
• Contango and Backwardation in Options Trading
• Contingent order in Options Trading
• Contract in Options Trading
• Contract name in Options Trading
• Contract Neutral Hedging in Options Trading
• Contract Range in Options Trading
• Contract Size in Options Trading
• Conversion & Reversal Arbitrage in Options Trading
• Covered call in Options Trading
• Covered Call Writing in Options Trading
• Covered Put in Options Trading
• Credit in Options Trading
• Credit put spread in Options Trading
• Credit spread in Options Trading
• Currency Option in Options Trading

D

• Day order in Options Trading
• Day Trader in Options Trading
• Day trading in Options Trading
• Debit in Options Trading
• Debit spread in Options Trading
• Debt instrument in Options Trading
• Deep out-of-the-money (DOTM) in Options Trading
• Deep-in-the-money (DITM) in Options Trading
• Delta in Options Trading
• Delta Neutral Hedging in Options Trading
• Delta Neutral Trading in Options Trading
• Delta Value in Options Trading
• Delta-neutral in Options Trading
• Derivative in Options Trading
• Derivatives exchange in Options Trading
• Diagonal call spread in Options Trading
• Diagonal spread in Options Trading
• Digital option in Options Trading
• Directional Outlook in Options Trading
• Directional Risk in Options Trading
• Discount Broker in Options Trading
• Discount Option in Options Trading
• Dividend in Options Trading
• Double diagonal spread in Options Trading
• Double one-touch option in Options Trading
• Dynamic Position in Options Trading

E

• E-mini in Options Trading
• Early Assignment in Options Trading
• Early exercise in Options Trading
• Earnings report in Options Trading
• Employee Stock Options in Options Trading
• European digital option in Options Trading
• European Style Option in Options Trading
• European-style option in Options Trading
• Exchange-traded option in Options Trading
• Execution price in Options Trading
• Exercise in Options Trading
• Exercise Limit in Options Trading
• Exercise price in Options Trading
• Exotic option in Options Trading
• Expiration date in Options Trading
• Expire Worthless in Options Trading
• Expiry in Options Trading
• Extrapolation in Options Trading
• Extrinsic Value in Options Trading

F

• Far-month contract in Options Trading
• Fiduciary Call in Options Trading
• Fill or kill in Options Trading
• Fill or Kill Order in Options Trading
• Financial instrument in Options Trading
• Fixed income option in Options Trading
• Fixed strike lookback option in Options Trading
• Foreign currency option in Options Trading
• Forward contract in Options Trading
• Front spread in Options Trading
• Front-month contract in Options Trading
• Full Service Broker in Options Trading
• Fundamental Analysis in Options Trading
• Futures option in Options Trading

G

• Gamma in Options Trading
• Gamma Neutral Hedging in Options Trading
• Gamma scalping in Options Trading
• Gamma Value in Options Trading
• GARCH in Options Trading
• Gearing in Options Trading
• Going Long in Options Trading
• Going Short in Options Trading
• Golden butterfly spread in Options Trading
• Good Until Cancelled in Options Trading
• Greeks in Options Trading

H

• Hedge / Hedging in Options Trading
• Hedge in Options Trading
• Historical Volatility in Options Trading
• Holder in Options Trading
• Horizontal skew in Options Trading
• Horizontal spread in Options Trading
• House margin in Options Trading
• Hybrid security in Options Trading

I

• Immediate or Cancel Order in Options Trading
• Implied volatility in Options Trading
• In the Money Option in Options Trading
• In-the-money (ITM) in Options Trading
• In-the-money covered call in Options Trading
• Income Tax in Options Trading
• Index option in Options Trading
• Intrinsic value call ratio backspread in Options Trading
• Intrinsic value in Options Trading
• Iron albatross spread in Options Trading
• Iron butterfly in Options Trading
• Iron Butterfly Spread in Options Trading
• Iron condor butterfly spread in Options Trading
• Iron condor in Options Trading
• Iron Condor Spread in Options Trading
• Iron cross spread in Options Trading
• Iron fly in Options Trading
• ITM covered call in Options Trading

J

• Joint account in Options Trading
• Just-in-time (JIT) in Options Trading

K

• Knock-in option in Options Trading
• Knock-out option in Options Trading

L

• Last in Options Trading
• Last trading day in Options Trading
• LEAPS in Options Trading
• Leg in Options Trading
• Legging In in Options Trading
• Legging in Options Trading
• Legging Out in Options Trading
• Level II Quotes in Options Trading
• Leverage in Options Trading
• Limit order book in Options Trading
• Limit order in Options Trading
• Limit Stop Order in Options Trading
• Liquidity in Options Trading
• Liquidity provider in Options Trading
• Listed Option in Options Trading
• Long Call Christmas Trees in Options Trading
• Long Call in Options Trading
• Long call ladder in Options Trading
• Long Combo in Options Trading
• Long Gut in Options Trading
• Long Guts in Options Trading
• Long in Options Trading
• Long Iron Butterfly in Options Trading
• Long Position in Options Trading
• Long Put in Options Trading
• Long put ladder in Options Trading
• Long Put Ratio Spread in Options Trading
• Long Put Spread versus Short Call in Options Trading
• Long Straddle in Options Trading
• Long Strangle in Options Trading
• Long Term Equity Anticipation Securities in Options Trading
• Look Back Option in Options Trading

M

• Margin call in Options Trading
• Margin in Options Trading
• Market maker in Options Trading
• Market maker spread in Options Trading
• Market Makers in Options Trading
• Market On Close Order in Options Trading
• Market order in Options Trading
• Market Stop Order in Options Trading
• Market-wide Limits in Options Trading
• Married put in Options Trading
• Married Puts in Options Trading
• Max Pain / Max Option Pain in Options Trading
• Max pain in Options Trading
• Merger arbitrage in Options Trading
• Mini option in Options Trading
• Model in Options Trading
• Modified call butterfly spread in Options Trading
• Modified put butterfly spread in Options Trading
• Moneyness in Options Trading
• Morphing in Options Trading

N

• Naked call in Options Trading
• Naked Option in Options Trading
• Naked put in Options Trading
• Naked short put in Options Trading
• Narrow-based index option in Options Trading
• Near The Money Option in Options Trading
• Negative gamma in Options Trading
• Net debit in Options Trading
• Neutral in Options Trading
• Neutral Market in Options Trading
• Neutral Outlook in Options Trading
• Neutral Trading Strategies in Options Trading
• Nominal value in Options Trading
• Non-directional in Options Trading
• Non-equity option in Options Trading
• NSE Volatility Index in Options Trading

O

• OEX in Options Trading
• One Cancel Other Order in Options Trading
• One Sided Market in Options Trading
• One Trigger Other Order in Options Trading
• Online Broker in Options Trading
• Open interest in Options Trading
• Opening Order in Options Trading
• Option / Options Contract in Options Trading
• Option chain in Options Trading
• Option cycle in Options Trading
• Option cycle selection in Options Trading
• Option in Options Trading
• Option Pain in Options Trading
• Option payoff diagram in Options Trading
• Optionable in Options Trading
• Optionable stock in Options Trading
• Options Broker in Options Trading
• Options Symbol in Options Trading
• Options Trader in Options Trading
• Options Trading in Options Trading
• OTC option in Options Trading
• Out of the Money Option in Options Trading
• Out-of-the-money (OTM) in Options Trading
• Outlook in Options Trading
• Over The Counter Option in Options Trading

P

• Paper profit/loss in Options Trading
• Paper trade in Options Trading
• Partial fill in Options Trading
• PC Ratio in Options Trading
• Penny pilot program in Options Trading
• Physical Option in Options Trading
• Physically Settled Option in Options Trading
• Pin risk in Options Trading
• Point-and-figure chart in Options Trading
• Portfolio in Options Trading
• Portfolio margin in Options Trading
• Position Trader in Options Trading
• Position Trading in Options Trading
• Premium in Options Trading
• Premium Value in Options Trading
• Pricer in Options Trading
• Pricing Model in Options Trading
• Pricing of Binomial Put Option in Options Trading
• Pricing of Equity Options in Options Trading
• Pricing of Options on Dividend Paying Scripts in Options Trading
• Probability in Options Trading
• Procedure for Margin Collection in Options Trading
• Protective call in Options Trading
• Protective put in Options Trading
• Put Call Parity in Options Trading
• Put in Options Trading
• Put option in Options Trading
• Put option writer in Options Trading
• Put Ratio Backspread in Options Trading
• Put Ratio Spread in Options Trading
• Put-call Parity in Options Trading
• Puts and calls in Options Trading

Q

• Quadruple Witching in Options Trading
• Quantitative analysis in Options Trading
• Quantity freeze in Options Trading
• Quanto option in Options Trading
• Quanto swap in Options Trading
• Quarterly Option in Options Trading
• Quotation in Options Trading
• Quoted price in Options Trading

R

• Rainbow option in Options Trading
• Ratio call spread in Options Trading
• Ratio put spread in Options Trading
• Ratio spread in Options Trading
• Realize a Loss in Options Trading
• Realize a Profit in Options Trading
• Resistance Level in Options Trading
• Return On Investment in Options Trading
• Reverse collar in Options Trading
• Reverse Iron Albatross Spread in Options Trading
• Reverse Iron Butterfly Spread in Options Trading
• Reverse Iron Condor Spread in Options Trading
• Rho in Options Trading
• Rho Value in Options Trading
• Risk Graph in Options Trading
• Risk in Options in Options Trading
• Risk management in Options Trading
• Risk reversal in Options Trading
• Risk to Reward Ratio in Options Trading
• ROI in Options Trading
• Roll forward in Options Trading
• Roll up in Options Trading
• Rolling Down in Options Trading
• Rolling Forward in Options Trading
• Rolling in Options Trading
• Rolling Up in Options Trading

S

• Scalping in Options Trading
• Sell To Close Order in Options Trading
• Sell to open in Options Trading
• Sell To Open Order in Options Trading
• Settlement in Options Trading
• Settlement Mechanism in Options Trading
• Settlement Schedule for Option Contracts in Options Trading
• Short Albatross Spread in Options Trading
• Short Bear Ratio Spread in Options Trading
• Short Bull Ratio Spread in Options Trading
• Short Butterfly Spread in Options Trading
• Short Calendar Straddle in Options Trading
• Short Calendar Strangle in Options Trading
• Short Call Calendar Spread in Options Trading
• Short Call in Options Trading
• Short Condor Spread in Options Trading
• Short Gut in Options Trading
• Short in Options Trading
• Short Position in Options Trading
• Short Put Albatross in Options Trading
• Short Put Calendar Spread in Options Trading
• Short Put in Options Trading
• Short Put Ladder in Options Trading
• Short Selling in Options Trading
• Short straddle in Options Trading
• Short Straddle versus Put in Options Trading
• Short strangle in Options Trading
• Short Strip with Calls in Options Trading
• Skewness in Options Trading
• Speculation in Options Trading
• Spot price in Options Trading
• Spread in Options Trading
• Spread Order in Options Trading
• Spread trade in Options Trading
• Spread Trading in Options Trading
• Stochastic Volatility in Options Trading
• Stock option in Options Trading
• Stock Repair Strategy in Options Trading
• Stock replacement strategy in Options Trading
• Stop Limit Order in Options Trading
• Stop Market Order in Options Trading
• Stop Order in Options Trading
• Straddle in Options Trading
• Strangle straddle swap in Options Trading
• Strap Straddle in Options Trading
• Strap Strangle in Options Trading
• Strike Arbitrage in Options Trading
• Strike in Options Trading
• Strike price in Options Trading
• Strip Straddle in Options Trading
• Strip Strangle in Options Trading
• Strips and straps in Options Trading
• Support Level in Options Trading
• Swing Trader in Options Trading
• Swing Trading in Options Trading
• Synthetic Long Call in Options Trading
• Synthetic Long Put in Options Trading
• Synthetic Long Stock in Options Trading
• Synthetic Position in Options Trading
• Synthetic Short Call in Options Trading
• Synthetic Short in Options Trading
• Synthetic Short Put in Options Trading
• Synthetic Short Stock in Options Trading
• Synthetic Short Straddle in Options Trading
• Synthetic Straddle in Options Trading

T

• Tail risk in Options Trading
• Target volatility in Options Trading
• Tax basis in Options Trading
• Tax-deferred account in Options Trading
• Technical Analysis in Options Trading
• Theoretical Value in Options Trading
• Theta in Options Trading
• Theta Value in Options Trading
• Time Call Spread in Options Trading
• Time decay in Options Trading
• Time Put Spread in Options Trading
• Time spread in Options Trading
• Time spread with calls in Options Trading
• Time spread with puts in Options Trading
• Time value in Options Trading
• Total return swap in Options Trading
• Trading Levels in Options Trading
• Trading Plan in Options Trading
• Trading Style in Options Trading
• Trading System in Options Trading
• Trading volume in Options Trading
• Trailing Stop Order in Options Trading
• Treasury bond option in Options Trading
• Trend in Options Trading
• Two-asset cash-or-nothing option in Options Trading

U

• Uncovered Option in Options Trading
• Underlying asset in Options Trading
• Underlying Financial Instrument in Options Trading
• Underlying futures contract in Options Trading
• Underlying security in Options Trading
• Uniformity in Options Trading
• Unit of trade in Options Trading
• Unwinding in Options Trading

V

• Variable ratio write in Options Trading
• Vega in Options Trading
• Vega Value in Options Trading
• Vertical spread in Options Trading
• VIX in Options Trading
• Volatile in Options Trading
• Volatile Market in Options Trading
• Volatile Trading Strategies in Options Trading
• Volatility arbitrage in Options Trading
• Volatility Change in Options Trading
• Volatility Crunch in Options Trading
• Volatility in Options Trading
• Volatility skew in Options Trading
• Volatility smile in Options Trading
• Volatility Trading in Options Trading
• Volume in Options Trading
• Volume PC Ratio in Options Trading

W

• Warrant in Options Trading
• Weekly Option in Options Trading
• Weekly options in Options Trading
• Weekly put option in Options Trading
• Weighted PC Ratio in Options Trading
• Wheel strategy in Options Trading
• White label in Options Trading
• Wide-based index option in Options Trading
• Withholding tax in Options Trading
• Writer in Options Trading
• Writer’s margin in Options Trading
• Writing an Option in Options Trading
• Writing of Options in Options Trading

Z

• Zero coupon option in Options Trading
• Zero-cost collar in Options Trading
• Zero-sum game in Options Trading