Setups are a specific combination of options contracts that matches a strategic objective. Setups are sometimes referred to as spreads or "strategies" (not to be confused with a Brutus Options Ranking strategy).
Expiration is the date that the option contract expires. All options contracts are valid for a fixed duration. This is the lifespan of the option where the buyer has the right to exercise the option and the seller has the obligation to fulfill the terms of the option. [click to read more]
An American-Style Option is a standard option contract which can be exercised by the option holder or option buyer at any time before the expiration date of the contract. Most of the exchange options are American-Style.[click to read more]
The price of the underlying stock where the options position would return neither a profit nor a loss. It's used to determine the profit range and loss range of the position and important for calculating the probability of profit..[click to read more]
The assignment of underlying stock to the seller of option by the option buyer through executing his right to exercisean before it's expiry date. Only American-style options are subject to early exercise, while European-style options are not.[click to read more]
A derivative contract that gives the right, but not the obligation to the buyer, to buy or sell a specific stock (underlying) at an agreed price before the specified expiry date of the contract. [click to read more]