Absolute return measures the actual percentage return of an asset more...
|After Hours Trading
After hours trading refers to stock trades that occur outside more...
After-hours trading is stock trading which takes place after the more...
The aftermarket, also called the secondary market, is the market more...
|American Association of Individual Investors
American Association of Individual Investors (AAII) is a Chicago-based, investor more...
There are several different types of options, but the American more...
|American Stock Exchange
The American Stock Exchange is one of the largest organized more...
An American-style option is a put or call option that more...
Arbitrage is a financial transaction that involves a simultaneous purchase more...
An arbitrageur is an individual or an organization that engages more...
A bermuda option is derivative instrument where the holder of more...
In practical terms, the bid is the available price at more...
The bid/ask spread is the difference between the price sellers more...
|Black-Scholes Option Pricing Model
The Black-Scholes Option Pricing Model predicts an option's price given more...
The break-even point for any investment is the price at more...
A call is a type of option contract. A more...
A call option is an option contract that gives the more...
Counterparty risk refers to the risk of default of one more...
A covered call is a short call option which is more...
A covered option is either a put or a call more...
A covered put is a put option which is sold more...
|Credit Default Swap
A credit default swap is a credit derivative. A more...
A credit spread is an option strategy implemented by the more...
A day trader is market participant who generally closes out more...
|Deep in the Money
A deep in the money option is one that is more...
|Deep out of the Money
A deep out of the money option is presently worthless. more...
A derivative, or derivative security, is an asset whose price more...
A derivative security is an asset whose price is based more...
A digital option is a type of exotic options which more...
|Double Witching Hour
Double witching hour refers to the final hour of the more...
In business jargon, downside is the risk of unfavorable outcome more...
Downside protection is a cushion against the potential loss resulting more...
Downside risk includes both the likelihood and extent to which more...
A European option is an option that can only be more...
A European-style option is an option that may be exercised more...
The exercise price, or strike price, is the price at more...
In derivatives markets, the expiration date is the date that more...
A futures option is an option on a futures contract. more...
An investment newsletter is a publication designed to help investors more...
Investment return is the change in value of the investment more...
A knock-in option or "trigger" option is a type of more...
A knock-out option is a type of barrier option that more...
LEAPS, or Long-Term Equity Anticipation Securities, are equity or index more...
A long put is a relatively straightforward options strategy. more...
A naked option is an option contract that creates potentially more...
An option is a contract between a buyer and a more...
An option account is an account opened with an options more...
An option chain is a listing of available option strike more...
An option contract, sometimes simply called an option, is an more...
An option exchange is an exchange that trades option contracts. more...
An option holder is an individual or entity that has more...
Option premium refers to the per-share amount that a buyer more...
An option writer is an individual or entity that has more...
|Out of the Money
An option is out of the money if it cannot more...
In options trading, a put is the right, but not more...
In options trading, a put option is a bet that more...
The put/call ratio is the volume of put options divided more...
|S&P 500 Mini
A S&P 500 Mini is a derivative contract created for more...
A serial option is an option investors may buy on more...
A short straddle is an advanced options strategy used to more...
Spread can mean several different things to investors, depending on more...
A stock option is the right, but not the obligation, more...
|Stock Replacement Strategy
A stock replacement strategy is an approach to investing that more...
A strangle is an advanced options strategy that requires the more...
The strike price of an option is the price at more...
Synthetic dividend refers to a strategy whereby an investor creates more...
In options trading, the time value of an option is more...
Triple Witching is a market phenomenon that occurs when contracts more...
The term underlying generally refers to the asset that a more...
Also called an underlier, an underlying security is the security more...
In finance the term underwater can have two distinct meanings. more...
A vanilla option is a basic option with no special more...
The vega of a derivative shows how the value of more...
VIX is the CBOE Volatility Index, created by the Chicago more...
The options phenomena known as the volatility smile occurs when more...
A warrant, or stock warrant, is a security issued by more...
The Wilshire 5000 Index was created by Wilshire Associates in more...
|Zero Cost Collar
Zero cost collar or zero cost option is an option more...