Options Terms and Definitions

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abandon
adjusted exercise price
aggregate exercise price
aggregate risk
alligator spread
allocation notice
alternative investments
American option
American Stock Exchange
American-style option
amortized value
Annapurna option
Asian option
asian tail
ask
asked price
asking price
asset swapped convertible option transaction
asset-or-nothing call option
asset-or-nothing put option
assignment
at par forward spread
at the money
atlas option
automatic exercise
average option
average strike option
back fee
back months
backspread
backwardation business
balloon option
bargain element
barrier option
basket
basket option
bear spread
bear straddle
below par
Bermuda option
Bermuda swaption
best ask
best bid
bid
bid/ask spread
binomial option pricing model
Black's model
Black-Scholes Option Pricing Model
blue month
Bolsa De Mercadorias & Futuros
bond option
bookout
Boston Options Exchange (BOX)
Bourse De Montreal, Inc. (MX)
break-even point
bulge
bull call spread
bull put spread
bull spread
bull straddle
bullet dodging
bullet trade
butterfly spread
butterfly trade
buy
buy and write
buy to close
buy to cover
buy to open
buy-write
cabinet trade
calendar spread
call
call option
call ratio backspread
call swaption
called away
capped-style option
caput
cash flow hedge
cash-based option
cash-secured put
cash-settled option
cashless exercise
cat spread
CBOE
CBOE Nasdaq Volatility Index (VXN)
CBOT
chameleon option
chart
Chicago Board of Trade
Chicago Board Options Exchange
Chicago Mercantile Exchange
chooser option
class
class of options
Clearing Member Trade Agreement
cliquet option
close to the money
closing sale
closing transaction
CME
collar
combination
COMEX
Committee on Uniform Securities Identification Procedures
Commodities Exchange Act
Commodities Exchange Inc. (COMEX)
Commodities Futures Exchange
Commodity Exchange
commodity option
commodity pool
Commodity Trading Advisor
condor
constant proportion portfolio insurance
contract range
contract size
conventional option
conversion arbitrage
corporate spread duration
counterparty risk
covered call
covered combination
covered option
covered put
covered straddle
covered warrant
covered write
covered writer
credit spread
currency call option
currency put option
curvature
CUSIP
CUSIP number
customer margin
daily price limit
daily trading limit
dealer option
debit spread
deep in the money
deep out of the money
deferred option month
deferred payment option
delta
delta hedging
delta neutral
delta spread
denomination
derivative
derivative pricing models
derivative security
diagonal spread
digested security
discount arbitrage
discounted
dividend arbitrage
dollar roll
doomsday call
double barrier option
double no touch option
double one touch option
double witching hour
double witching week
doubling option
down transition probability
down-and-in barrier option
down-and-out barrier option
downgrade
downside protection
drawn securities
dual listing
dvegaDtime
early exercise
economic derivative
effective call price
effective strike price
elasticity of an option
embedded option
Employee Stock Ownership Plan
energy derivative
equity derivative
equity linked foreign exchange option
equity option
escrow receipt
ESOP
EUREX
Euroequity issues
European exercise
European option
European Options Exchange (EOE)
European-style option
Everest option
ex-warrants
exchange
exchange-traded derivative
exchange-traded option
exempt security
exercise
exercise assignment
exercise by exception
exercise date
exercise limit
exercise notice
exercise price
exercise ratio
exercise settlement amount
exotic option
expectations theory
expiration cycle
expiration date
expiration time
external market
face value
far month
far option
farther out, farther in
fiduciary call
financial instrument
fine paper
fixed forward contract
fixed-rate payer
flexible exchange option (FLEX)
fluctuation limit
foreign currency futures and options
foreign currency option
forex option trading
forward
forward cover taking
forward outright rate
forward points
fraption
freight derivatives
front fee
front spread
full ratchet
fungible
furthest month
FUTOP
future volatility
futures option
gamma
good delivery
grade
graduated call writing
graduated security
grant date
grantor
guarantee letter
gut spread
hedge
hedge ratio
hedge wrapper
hedgie
Himalayan option
horizontal skew
horizontal spread
IDEM
illiquid option
implied interest rate
implied volatility
in escrow
in the money
incentive stock option
Index and Option Market
index option
index swap
indexed stock options
individual volatility
inflation derivatives
information-motivated trades
interest rate call option
interest rate option
International Petroleum Exchange (IPE)
International Securities Exchange (ISE)
intervals
intrinsic value
intrinsic value of an option
investment security
Irish Futures and Options Exchange (IFOX)
iron butterfly
iron condor
irrational call option
ISIN
ISO
issuer
Italian Derivatives Market (IDEM)
joint bond
kappa
knock-in option
knock-out option
ladder option
lambda
lapsed option
last trading day
law of one price
LEAPS
leg
leg out
letter security
life of contract
LIFFE
lifting a leg
limited discretion
limited risk
listed
listed option
listing
Little Board
load spread option
London Commodity Exchange (LCE)
London International Financial Futures and Options Exchange
long jelly roll
long leg
long position
long put
long straddle
long-dated option
long-term equity anticipation security (LEAP)
lookback option
Malaysia Derivatives Exchange (MDEX)
market basket
marketability
marketable security
married put
Merc
Mid-Atlantic option
mini manipulation

mini sized Dow option
mining warrants
modidor
Montreal Exchange (MX)
mountain range options
multi index option
multi-leg options order
must be filled (MBF)
naked call
naked option
naked put
naked shorting
naked writer
National Commodities and Derivatives Exchange (NCDEX)
natural gas liquids (NGL)
near option
nearest month
negotiable security
neutral hedge ratio
neutral spread
New York Stock Exchange
nominal exercise price
non-equity option
non-qualified stock option
non-statutory stock option
not rated
notification date
notional value
NSO
NYSE
OCC
odd date
OEX
offer
offering circular
offering price
offsetting transaction
omega
open interest
open outcry
opening transaction
OPRA
option
option account
option agreement
option chain
option class
option contract
option cycle
option disclosure document
option elasticity
option holder
option margin
option mutual fund
option period
option pool
option premium
option price
option pricing curve
option pricing model
option pricing theory
option schedule
option series
option spread
option strategy
option value
option writer
option-adjusted spread
option-adjusted yield
optionable stock
optionee
optionholder
options backdating
Options Clearing Corporation
options contract multiple
options expiration calendar
options market
options on physicals
Options Prices Reporting Authority
Oslo Bors (OSE)
OTC Bulletin Board
OTCBB
out of the money
out-of-favor
outcry
outright option
outstanding
over the counter derivative
Over-the-Counter
overwriting
Pacific Exchange (PX)
pairs trade
par
path-dependent option
payoff diagram
perpendicular spread
perpetual option (XPO)
perpetual warrant
physical option
pin risk
pinning the strike
pit
plain vanilla
plain vanilla option
pop-up option
premium
premium income
premium margin
price limit
price spread
price-based option
primary instrument
privilege dealer
profit range
prospectus
protective put
protective put buying
purchase
put
put buyer
put calendar
put on a call
put on a put
put option
put swaption
put to seller
put warrant
put writer
put-call parity
puttable
Quadruple Witching Week
quanto option
quotation
quote
rating
rating service
ratio calendar combination
ratio calendar spread
ratio spread
ratio write
ratio writer
rebate barrier option
redeem
registered options principal
registered options trader
registered security
regular-way delivery
regulated commodities
reload option
reprice
residual security
restricted security
retire
reversal arbitrage
reverse calendar spread
reverse convertible bond
rho
right to buy
risk
risk disclosure document
risk margin
risk reversal
roll down
roll forward
roll up
rolling hedge
Russian option
S&P 500 mini
seagull option
SEC
SEC filing
securities
Securities and Exchange Commission
security
sell
sell to close
seller's option
selling the spread
sensitivity
series
short call option
short covering
short leg
short market value
short sell against the box
short straddle
shout option
single option
single payment options trading (SPOT)
sold call
South African Futures Exchange (SAFEX)
speculation
speculative
speculative position limits
speculator
split rating
spread duration
spread option
spring loading
stable
stamped security
statutory stock option
step-up warrant
stochastic volatility (SV)
stock option
stock purchase plan
stock replacement strategy
straddle
strangle
strap
street book
stretch annuity
strike index
strike price
strike price interval
structured note
subscription warrant
swap spread
swaption
swing option
synthetic call
synthetic collateralized debt obligation
synthetic dividend
synthetic long stock
synthetic position
synthetic put
synthetic short stock
synthetic stock
synthetic underlying
take
tax straddle
tax-timing option
theoretical value
theta
time decay
time premium
time spread
time value
Tokyo Commodity Exchange
Tokyo Grain Exchange (TGE)
trade
trade or fade rule
trading
transferable option
trinomial option-pricing model
triple witching hour
Triple Witching Week
type
ultima
uncertainty
uncovered call
uncovered option
uncovered put
underlier
underlying
underlying security
underwater
unit
unlimited risk
unlisted
up-and-in barrier option
up-and-out barrier option
upgrade
value
value spot
variable maturity option
variable ratio write
vega
vertical spread
vesting
vesting period
VIX option
volatility arbitrage
volatility risk
volatility skew
volatility smile
vomma
wallpaper
warrant
warrant coverage
wasting asset
watch list
weather derivative
wild card play
Winnipeg Commodity Exchange (WCE)
witching hour
worth
worthless
write
writer
writing cash-secured puts
writing naked
writing puts to acquire stock
zeta
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