Stocks Options Trading

A simple trading system based on the advanced technical analysis

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Options Tutorial: Options History - Options Overview - Options Expiration - S&P 500 List - Why Options - Options Types - Options Styles - Exercise and Expiration - Technical Analysis - Calls and Puts - Call Options - Put Options - Options Chart - S&P 500 - Option Symbol - Time Value - - ETFs Trading - In the Money Options - Technical Studies - Options Glossary - Etfs - MACD - Moving Average - QQQ - Directory - Technical Analysis

Options Glossary

Description: Options Trading, Options, Options Glossary, Stock, Market, delta, call, put

A B C D E F G H I-J-K L M N O P Q R S T U V W-X-Y-Z

Call Options - An Option contract that gives the holder the right to buy the underlying security at a specified price for a certain, fixed period of time.

Change - The difference between the current price and the price of the previous day of a security.

Cover - To close out an open position - to buy back as a closing transaction an option that was initially written. This term is used to describe the purchase of an option or stock to close out an existing short position for either a profit or loss.

Covered Options - A written option is considered to be covered if the writer also has an opposing market position on a share-for-share basis in the underlying security.

Delta - A measure of the rate of change in an option's theoretical value for a one-unit change in the price of the underlying security. Call options have positive deltas, while put options have negative deltas.

Exchange - An area where an asset, option, future, stock or derivative is bought and sold.

Exercise - Implementing an option's right to buy or sell the underlying security. In the case of a call, the option owner buys the underlying stock.

Index - A compilation of the prices of several common entities (stocks) into a single number. An index is a group of stocks which can be traded as one portfolio, such as the S&P 500.

Long - The term used to describe the buying of a security, contract, commodity, or option.

Market - The term used to describe the buying of a security, contract, commodity, or option.

Opening - The period at the beginning of the trading session at an exchange.

Option - A contract that gives the owner the right, but not the obligation, to buy or sell a particular asset (the underlying stock) at a fixed price (the strike price) for a specific period of time (until expiration) .

Order - A ticket or voucher representing long or short securities and options.

Position - The total of a trader's open contracts - the combined total of antrader's open option contracts (calls and/or puts) and long or short stock.

Price - Price of a share of common stock on the date shown. Highs and lows are based on the highest and lowest intra-day trading price.

Profit - The range within which a particular position makes a profit. Generally used in reference to strategies that have two break-even points - an upside break-even and a downside break-even.

Put Options - An option contract that gives the holder the right to sell the underlying security at a specified price for a certain fixed period of time.

Return - The income profit made on an investment.

Risk - The potential financial loss inherent in the investment.

SEC - The Securities and Exchange Commission. The SEC is an agency of the federal government which is in charge of monitoring and regulating the securities industry.

Short - The selling of a security, contract or commodity not owned by the seller.

Spread - A trade in which two related contracts/stocks/bonds/options are traded to exploit the relative difference in price change between the two.

Stock - A share of a company's stock translates into ownership of part the company.

Strategy - With respect to option investments, a preconceived, logical plan of position selection and follow-up action.

Disclaimer: All information and research results on this site is intended only for informational and educational purposes and not as a solicitation to make an investment. Therefore you should not make any decisions based on our signals, our trading system or any other information on this site.

YOU AGREE THAT YOU TRADE SOLELY AT YOUR OWN RISK and investment/trading decisions are solely your responsibility. None of our web site materials should be interpreted as a recommendation or solicitation to buy or sell any security, or to take any specific action. Any trades executed following the commentaries and Buy/Sell signals on this web site are taken at your own risk from your own account. You agree to assume full responsibility for any and all gains and losses, financial, emotional or otherwise, experienced, suffered or incurred by you.

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Stocks Options Trading

A simple trading system based on the advanced technical analysis

Options Glossary

Description: Options Trading, Options, Options Glossary, Stock, Market, delta, call, put

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