Buy-Write
[概述]Atradingstrategythatconsistsofwritingcalloptionsonanunderlyingpositiontogenerateincomefromoptionpremiums.Becausetheoptio
Ultima
[概述]Therateatwhichthevommaofanoptionwillreacttovolatilityintheunderlyingmarket.Itisthethirdorderderivativeoftheoptionvaluewi
Intrinsic Value
[概述]1.Theactualvalueofacompanyoranassetbasedonanunderlyingperceptionofitstruevalueincludingallaspectsofthebusiness,intermsof
Bear Put Spread
[概述]Atypeofoptionsstrategyusedwhenanoptiontraderexpectsadeclineinthepriceoftheunderlyingasset.BearPutSpreadisachievedbypurch
Multi-Leg Options Order
[概述]Atypeoforderthatallowsanoptiontradertosimultaneouslybuyorsellanumberofdifferentoptionsthattraditionallycouldonlybeachiev
Put On A Call
[概述]Oneofthefourtypesofcompoundoptions,thisisa"put"optiononanunderlying"call"option.Thebuyerofaputonacallhastherightbutnotth
Derivative
[概述]Asecuritywhosepriceisdependentuponorderivedfromoneormoreunderlyingassets.Thederivativeitselfismerelyacontractbetweentwoo
Buy To Open
[概述]Atermusedbymanybrokeragestorepresenttheopeningofalongpositioninoptiontransactions.Investorcanbuytoopeneither(oracombinat
Ginzy Trading
[概述]Anillegaltradingpracticeusedbyfloorbrokers.Itisconsideredtobenon-competitive,asitinvolvestheexecutionoflargetradesatdiff
Variable Ratio Write
[概述]Anoptionstrategyinwhichaninvestorholdsalongpositionintheunderlyingassetandwritesmultiplecalloptionsatvaryingstrikeprices
Assignment
[概述]1.Thetransferofanindividual'srightsorpropertytoanotherpersonorbusiness.2.Anoticereceivedbyanoptionwriterstatingthattheop
Cash-Based Option
[概述]Atypeofoptionwhichisalwayssettledincash.Uponexercise,thenetvaluetotheinvolvedpartiesarecalculatedandacashpaymentismadeto
ISEE Sentiment Indicator
[概述]Ameasureofinvestorsentimentinthemarketmeasuredbylookingatthenumberofopeninglongcalloptionstoopeninglongputoptionspurchas
Anticipatory Hedge
[概述]Ahedgepositiontakeninanticipationofafuturebuyorselltransaction.Ananticipatoryhedgeisusedwhenaninvestorintendsonenteringt
Severability
[概述]Aclauseinacontractthatallowsforthetermsofthecontracttobeindependentofoneanother,sothatifaterminthecontractisdeemedunenfo
Naked Call
[概述]Anoptionsstrategyinwhichaninvestorwrites(sells)calloptionsontheopenmarketwithoutowningtheunderlyingsecurity.Thisstandsin
Backspread
[概述]Atypeofoptionsspreadinwhichatraderholdsmorelongpositionsthanshortpositions.Thepremiumcollectedfromthesaleoftheshortoptio
Commercial Trader
[概述]AclassificationusedbytheCommodityFuturesTradingCommission(CFTC)todescribetradersthatusethefuturesmarketprimarilytohedget
Zero Cost Collar
[概述]Atypeofpositive-carrycollarthatsecuresareturnthroughthepurchaseofacapandsaleofafloor.Alsocalled"zerocostoptions"or"equit
Putable Swap
[概述]Anexchangeofcashflowsinwhichonecounterpartymakespaymentsbasedonafixedinterestrate,theothercounterpartymakespaymentsbased
Up-and-In Option
[概述]Anoptionthatcanonlybeexercisedwhenthepriceoftheunderlyingassetreachesasetbarrierlevel.Thisisatypeofaknock-inbarrieroptio
Moneyness
[概述]Adescriptionofaderivativerelatingitsstrikepricetothepriceofitsunderlyingasset.Moneynessdescribestheintrinsicvalueofanopt
Accelerated Vesting
[概述]Aformofvestingthattakesplaceatafasterratethantheinitialvestingscheduleinacompany'sstockoptionplan.Thisallowstheoptionhol
Opening Transaction
[概述]Theinitialorprimarytransactionofanoptionscontract.Rightsforabuyerarecreatedasistheobligationoftheseller.Forexample,bywri
Delta Neutral
[概述]Aportfolioconsistingofpositionswithoffsettingpositiveandnegativedeltas.Thedeltasbalanceouttobringthenetchangeofthepositi
Binomial Option Pricing Model
[概述]AnoptionsvaluationmethoddevelopedbyCox,etal,in1979.Thebinomialoptionpricingmodelusesaniterativeprocedure,allowingforthes
Non-Equity Option
[概述]Atermforoptioncontractswhoseunderlyingsecuritiesareinstrumentsotherthanequities.Examplesofnon-equityoptionswouldincludeo
Knock-Out Option
[概述]Anoptionwithabuiltinmechanismtoexpireworthlessshouldaspecifiedpricelevelbeexceeded.Anexoticoptionmainlyusedforcommoditie
Delivery Point
[概述]Infuturescontracts,thedeliverypointistheplacewherethecommoditywillbedelivered;thechosenlocationwillhaveaneffectonthenetd
Interest Rate Options
[概述]利率期權(interest-rateoption)Aninvestmenttoolwhosepayoffdependsonthefuturelevelofinterestrates.Interestrateoptionsarebothexc
Long Put
[概述]Anoptionsstrategyinwhichaputoptionispurchasedasaspeculativeplayonadownturninthepriceoftheunderlyingequityorindex.Inalong
Changer
[概述]Thenamegiventoaclearingmemberthatiswillingtoassumetheoppositepositionofafuturescontractwithinalargeralternativeexchange,
Put To Seller
[概述]Theexerciseofaputoption.Puttosellerwouldusuallyoccurwhenthestrikepriceoftheputislowerthanthemarketvalueoftheunderlyingse
Time Decay
[概述]Theratioofthechangeinanoption'spricetothedecreaseintimetoexpiration.Sinceoptionsarewastingassets,theirvaluedeclinesovert
Risk Graph
[概述]Atwo-dimensionalgraphicalrepresentationthatdisplaystheprofitorlossofanoptionatvariousprices.Thex-axisrepresentsthepriceo
Rainbow Option
[概述]Asingleoptionlinkedtotwoormoreunderlyingassets.Inorderfortheoptiontopayoff,alltheunderlyingassetsmustmoveintheintendeddi
Knock-In Option
[概述]Alatentoptioncontractthatbeginstofunctionasanormaloption("knocksin")onlyonceacertainpricelevelisreachedbeforeexpiration.
Binary Option
[概述]Atypeofoptioninwhichthepayoffisstructuredtobeeitherafixedamountofcompensationiftheoptionexpiresinthemoney,ornothingatall
Option Disclosure Document
[概述]ApublicationissuedbytheOptionsClearingCorporation(OCC)thatfirst-timeoptiontradersarerequiredtoreadbeforebeingallowedtoma
Underlying Asset
[概述]Atermusedinderivativestrading,suchaswithoptions.Aderivativeisafinancialinstrumentwhosepriceisbased(derived)fromadifferen