# 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      Options Home » Options after-hours trading After-hours trading is stock trading which takes place after the  more... http://www.investorglossary.com/after-hours-trading.htm aftermarket The aftermarket, also called the secondary market, is the market  more... http://www.investorglossary.com/aftermarket.htm American Association of Individual Investors American Association of Individual Investors (AAII) is a Chicago-based, investor  more... http://www.investorglossary.com/american-association-of-individual-investors.htm American option There are several different types of options, but the American  more... http://www.investorglossary.com/american-option.htm American Stock Exchange The American Stock Exchange is one of the largest organized  more... http://www.investorglossary.com/american-stock-exchange.htm American-style option An American-style option is a put or call option that  more... http://www.investorglossary.com/american-style-option.htm arbitrage Arbitrage is a financial transaction that involves a simultaneous purchase  more... http://www.investorglossary.com/arbitrage.htm arbitrageur An arbitrageur is an individual or an organization that engages  more... http://www.investorglossary.com/arbitrageur.htm bid In practical terms, the bid is the available price at  more... http://www.investorglossary.com/bid.htm bid/ask spread The bid/ask spread is the difference between the price sellers  more... http://www.investorglossary.com/bid-ask-spread.htm Black-Scholes Option Pricing Model The Black-Scholes Option Pricing Model predicts an option’s price given  more... http://www.investorglossary.com/black-scholes-option-pricing-model.htm break-even point The break-even point for any investment is the price at  more... http://www.investorglossary.com/break-even-point.htm call A call is a type of option contract. A  more... http://www.investorglossary.com/call.htm call option A call option is an option contract that gives the  more... http://www.investorglossary.com/call-option.htm Counterparty Risk Counterparty risk refers to the risk of default of one  more... http://www.investorglossary.com/counterparty-risk.htm covered call A covered call is a short call option which is  more... http://www.investorglossary.com/covered-call.htm covered option A covered option is either a put or a call  more... http://www.investorglossary.com/covered-option.htm covered put A covered put is a put option which is sold  more... http://www.investorglossary.com/covered-put.htm Credit Default Swap A credit default swap is a credit derivative. A  more... http://www.investorglossary.com/credit-default-swap.htm day trader A day trader is market participant who generally closes out  more... http://www.investorglossary.com/day-trader.htm deep in the money A deep in the money option is one that is  more... http://www.investorglossary.com/deep-in-the-money.htm deep out of the money A deep out of the money option is presently worthless.  more... http://www.investorglossary.com/deep-out-of-the-money.htm derivative A derivative, or derivative security, is an asset whose price  more... http://www.investorglossary.com/derivative.htm derivative security A derivative security is an asset whose price is based  more... http://www.investorglossary.com/derivative-security.htm double witching hour Double witching hour refers to the final hour of the  more... http://www.investorglossary.com/double-witching-hour.htm downside In business jargon, downside is the risk of unfavorable outcome  more... http://www.investorglossary.com/downside.htm downside protection Downside protection is a cushion against the potential loss resulting  more... http://www.investorglossary.com/downside-protection.htm downside risk Downside risk includes both the likelihood and extent to which  more... http://www.investorglossary.com/downside-risk.htm European-style option A European-style option is an option that may be exercised  more... http://www.investorglossary.com/european-style-option.htm exercise price The exercise price, or strike price, is the price at  more... http://www.investorglossary.com/exercise-price.htm expiration date In derivatives markets, the expiration date is the date that  more... http://www.investorglossary.com/expiration-date.htm futures option A futures option is an option on a futures contract.  more... http://www.investorglossary.com/futures-option.htm investment newsletter An investment newsletter is a publication designed to help investors  more... http://www.investorglossary.com/investment-newsletter.htm investment return Investment return is the change in value of the investment  more... http://www.investorglossary.com/investment-return.htm Knock-In Option A knock-in option or “trigger” option is a type of  more... http://www.investorglossary.com/knock-in-option.htm knock-out option A knock-out option is a type of barrier option that  more... http://www.investorglossary.com/knock-out-option.htm LEAPS LEAPS, or Long-Term Equity Anticipation Securities, are equity or index  more... http://www.investorglossary.com/leaps.htm naked option A naked option is an option contract that creates potentially  more... http://www.investorglossary.com/naked-option.htm option account An option account is an account opened with an options  more... http://www.investorglossary.com/option-account.htm option chain An option chain is a listing of available option strike  more... http://www.investorglossary.com/option-chain.htm option contract An option contract, sometimes simply called an option, is an  more... http://www.investorglossary.com/option-contract.htm option exchange An option exchange is an exchange that trades option contracts.  more... http://www.investorglossary.com/option-exchange.htm option holder An option holder is an individual or entity that has  more... http://www.investorglossary.com/option-holder.htm option premium Option premium refers to the per-share amount that a buyer  more... http://www.investorglossary.com/option-premium.htm option writer An option writer is an individual or entity that has  more... http://www.investorglossary.com/option-writer.htm out of the money An option is out of the money if it cannot  more... http://www.investorglossary.com/out-of-the-money.htm put/call ratio The put/call ratio is the volume of put options divided  more... http://www.investorglossary.com/put-call-ratio.htm S&P 500 Mini A S&P 500 Mini is a derivative contract created for  more... http://www.investorglossary.com/s&p-500-mini.htm Serial Option A serial option is an option investors may buy on  more... http://www.investorglossary.com/serial-option.htm spread Spread can mean several different things to investors, depending on  more... http://www.investorglossary.com/spread.htm Stock Replacement Strategy A stock replacement strategy is an approach to investing that  more... http://www.investorglossary.com/stock-replacement-strategy.htm Strike Price The strike price of an option is the price at  more... http://www.investorglossary.com/strike-price.htm underlying security Also called an underlier, an underlying security is the security  more... http://www.investorglossary.com/underlying-security.htm VIX VIX is the CBOE Volatility Index, created by the Chicago  more... http://www.investorglossary.com/vix.htm warrant A warrant, or stock warrant, is a security issued by  more... http://www.investorglossary.com/warrant.htm Wilshire 5000 The Wilshire 5000 Index was created by Wilshire Associates in  more... http://www.investorglossary.com/wilshire-5000.htm Zero Cost Collar Zero cost collar or zero cost option is an option  more... http://www.investorglossary.com/zero-cost-collar.htm

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