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Glossary

Glossary

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a

401k
Acquisition
Active Investor
All Else Equal
Allocation
American-style Options
Appreciation
Arbitrage
Ask
Asset Class
Assignment
Assumption
At-The-Money
ATM

b

Back Month
Backspread
Backwardation
B/E
Bear Market
Bearish
Bell Curve
Beta Weight
Bid
Bid-Ask Spread
Binary Event
Black-Scholes Model
Black Swan Event
Bond
Bounce
BPR
Break-even
Broken-wing Butterfly
Brokerage Account
Brokerage Firm
BTC
BTO
Bubble
Bull Market
Bullish
Butterfly
Buy-and-hold
Buy Low, Sell High
Buy to Close
Buy to Open
Buy-write
Buying into Weakness
Buying Power
Buying Power Reduction

c

Calendar Spread
Call
Call Broken-wing Butterfly
Call Butterfly
Call Calendar
Call Diagonal
Call Ratio Spread
Call Skew
Call-skewed Sea Legs
Call Spread
Call Zebra
Capital Efficiency
Capital Gains
Cash Secured
Cash Settled
Central Moments of Distribution
Ceteris Paribus
Charm
Closing Price
Commission
Commodity
Compound Interest
Concavity
Contango
Contrarian
Convexity
Correction
Correlation
Cost Basis
Cost Basis Improvement
Cost Basis Per Share
Cost to Carry
Cover
Covered Call
Covered Put
Crash
Credit
Credit Spread
Crooked Call
Crooked Covers
Crooked Put

d

Debit
Debit Spread
Defined-Risk Strategies
Delisted
Delta
Depreciation
Derivative
Diagonal Spread
Directional Correctness
Distribution Curve
Diversification
Dividend
Dividend Risk
Dow Jones
Drag
DTE

e

E-mini S&P 500
Early Exercise
Earnings
Earnings Season
Entry Price
Equity
ETB
ETF
ETN
European-style Options
Ex-dividend Date
Exchange Traded Fund
Exercise
Exit Price
Expected Move
Expiration
Extrinsic Value

f

Fade
Fill
Fill Price
Financial Literacy
Financial Risk
Flash Crash
Flat
Flight to Quality
Floor
Forex
Front Month
Fundamental Analysis
Futures
Futures Options

g

Gambler's Fallacy
Game Theory
Gamma
Gamma Exposure
Gap Down
Gap Up
Geometric Brownian Motion
Going Public
Good-Til-Cancel
Greeks
Ground Zero
GTC

h

Hedge
Hetero­skedasticity
Historical Volatility
Holdings
Horizontal Spread

i

Illiquid
Implied Volatility
Implied Volatility Rank
In-The-Money
Index
Initial Public Offering
Interest
Intrinsic Value
Inverse Correlation
Inverted Options
Investment
IPO
IRA (Traditional)
Iron Condor
Iron Fly
ITM
IV
IVR

j

Jade Lizard

k

Kurtosis

l

Large Cap
Last Price
Leap Options
Leg
Legging
Leverage
Limit Order
Liquid
Liquidate
Liquidity
LMAX
Long
Long Call
Long Call Vertical
Long Delta
Long Holder
Long Options
Long Put
Long Put Vertical
Long Shares
Long Stock

m

Managing Winners
Margin
Margin Account
Margin Call
Margin Requirement
Marked Loss
Market Assumption
Market Awareness
Market Cap
Market Efficiency
Market Hours
Market Makers
Market Order
Marketable Order
Married Put
Mean
Mean Reversion
Mechanics
Median
Mid-cap
Mid-price
Mode
Moneyness
Monte Carlo Simulation
Monthly Expiration Cycles
Monthly Options
Mutual Fund

n

Naked Options
Nasdaq
Natural Price
Negative Correlation
Negative Kurtosis
Negative Skew
Net Liq
Neutral Assumption
Normal Distribution
Normal Random Variable
Normal Skew
Notional Risk
Notional Value
NTB

o

Offer
On the Dance Floor
Open Interest
Opening Price
Option Chain
Options
Order Types
OTM
Out-Of-The-Money
Outlier Movements
Over-hedge

p

Pairs Trading
Paper Trading
Parity
Passive Investor
Pattern Day Trader Status
Penny Stock
Perceived Risk
Personal Fast Market
PFM
Pin Risk
P/L
PMAX
POL
POP
Portfolio
Portfolio Margin
Position
Positive Correlation
Positive Drift
Positive Kurtosis
Positive Skew
POT
Premium
Price Discovery
Price Per Share
Probability of Profit
Probability of Touch
Product Indifference
Put
Put Broken-wing Butterfly
Put Butterfly
Put Calendar
Put Diagonal
Put Ratio Spread
Put Skew
Put-skewed Sea Legs
Put Spread
Put Zebra

q

Quadruple Witching
Quarterly Expiration Cycles
Quarterly Options
Quote

r

Rally
Ratio Spread
Realized P/L
Rebound
Retail Investor
Retirement Brokerage Account
Return on Capital
Reverse Jade Lizard
Reverse Skew
Reverse Split
Reversion to the Mean
Rho
Risk Aversion
Risk Management
Risk Tolerance
ROC
Roll
Roll Down
Roll Out
Roll Up
Roth IRA
Russell 2000

s

Scale
Scalping
Scratch
Sea Legs
SEC
Sector
Securities and Exchange Commission
Security
Self-directed Investor
Sell to Close
Sell to Open
Selling Into Strength
Share
Shareholder
Shares Outstanding
Short
Short Call Vertical
Short Calls
Short Delta
Short Options
Short Put Vertical
Short Puts
Short Seller
Short Shares
Short Stock
Sideways
Skew
SKEW Index
Skewed Iron Condor
Small-cap
S&P 500
Split
Spooz
Spot Price
Spread
SPX
Stand Pat
Standard Deviation
Standard Normal Variable
Standard & Poor 500
STC
STO
Stock
Stock Symbol
Straddle
Strangle
Strike
Super Bear
Super Bull
Synthetics

t

Tail Risk
Takeover
Tape Action
Tastytrade
Tastytrader
Tastyworks
Technical Analysis
Tested
Theta
Theta Weight
Ticker Symbol
Tight Market
Time Decay
Trade
Trade Size
Tranche
Triple Witching
Two-sided Market

u

Uncorrelated
Undefined-Risk Strategies
Underlying
Unrealized Profit & Loss

v

Variance
Vega
Velocity of Risk
Vertical Spread
VIX
Volatility
Volatility Contraction
Volatility Index
Volatility Products
Volatility Skew
Volatility Smile
Volatility Smirk
Volume

w

Watchlist
Weekly Expiration Cycles
Weekly Options
Weighting
Whippy
Whipsaw
Wide Market
Wings
Working Order

x

XYZ

y

Yield
YTD

z

ZEBRA
Zero-sum Game

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Glossary