Categories    # 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 Absolute Return Absolute return measures the actual percentage return of an asset  more... http://www.investorglossary.com/absolute-return.htm After Hours Trading After hours trading refers to stock trades that occur outside  more... http://www.investorglossary.com/after-hours-trading.htm 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 Bermuda Option A bermuda option is derivative instrument where the holder of  more... http://www.investorglossary.com/bermuda-option.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 Credit Spread A credit spread is an option strategy implemented by the  more... http://www.investorglossary.com/credit-spread.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 Digital Option A digital option is a type of exotic options which  more... http://www.investorglossary.com/digital-option.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 Option A European option is an option that can only be  more... http://www.investorglossary.com/european-option.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 Long Put A long put is a relatively straightforward options strategy.  more... http://www.investorglossary.com/long-put.htm Naked Option A naked option is an option contract that creates potentially  more... http://www.investorglossary.com/naked-option.htm Option An option is a contract between a buyer and a  more... http://www.investorglossary.com/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 In options trading, a put is the right, but not  more... http://www.investorglossary.com/put.htm Put Option In options trading, a put option is a bet that  more... http://www.investorglossary.com/put-option.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 Short Straddle A short straddle is an advanced options strategy used to  more... http://www.investorglossary.com/short-straddle.htm Spread Spread can mean several different things to investors, depending on  more... http://www.investorglossary.com/spread.htm Stock Option A stock option is the right, but not the obligation,  more... http://www.investorglossary.com/stock-option.htm Stock Replacement Strategy A stock replacement strategy is an approach to investing that  more... http://www.investorglossary.com/stock-replacement-strategy.htm Strangle A strangle is an advanced options strategy that requires the  more... http://www.investorglossary.com/strangle.htm Strike Price The strike price of an option is the price at  more... http://www.investorglossary.com/strike-price.htm Synthetic Dividend Synthetic dividend refers to a strategy whereby an investor creates  more... http://www.investorglossary.com/synthetic-dividend.htm Time Value In options trading, the time value of an option is  more... http://www.investorglossary.com/time-value.htm Triple Witching Triple Witching is a market phenomenon that occurs when contracts  more... http://www.investorglossary.com/triple-witching.htm Underlying The term underlying generally refers to the asset that a  more... http://www.investorglossary.com/underlying.htm Underlying Security Also called an underlier, an underlying security is the security  more... http://www.investorglossary.com/underlying-security.htm Underwater In finance the term underwater can have two distinct meanings.  more... http://www.investorglossary.com/underwater.htm Vanilla Option A vanilla option is a basic option with no special  more... http://www.investorglossary.com/vanilla-option.htm Vega The vega of a derivative shows how the value of  more... http://www.investorglossary.com/vega.htm VIX VIX is the CBOE Volatility Index, created by the Chicago  more... http://www.investorglossary.com/vix.htm Volatility Smile The options phenomena known as the volatility smile occurs when  more... http://www.investorglossary.com/volatility-smile.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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