Options Trading Glossary

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  • 30 Day Implied Volatility [underlying]
    The 30 Day Implied Volatility [underlying] is the interpolated implied volatility forecasted over the coming 30 days for the underlying. This provides a VIX-type volatility measure to individual underlying.
  • Accumulation
    When stocks begin to trade in a range after dropping or rising drastically due to investors taking profits at the new price.[click to read more]
  • Adjusted Options
    A non-standard stock option whose price is tailor made to price in any substantial expected move in the underlying stock's capitalization.[click to read more]
  • All-or-None (AON) Order
    An AON is a type of order which is only executed if it can be filled completely. There need to be enough shares available to fill the order entirely, otherwise, the order is canceled.[click to read more]
  • American-Style Option
    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]
  • Annualized Return on Capital
  • Annualized Return on Risk
    Annualized Return on Risk is calculated by taking the maximum possible return from the position divided by the notional risk (max loss) that could be realized in the trade. This return is then annualized for the year.
  • Arbitrage
    Theoretically, a risk-free strategy where financial instruments are bought and sold simultaneously to benefit from price differences. [click to read more]
  • AROC
  • AROR
    Annualized Return on Risk is calculated by taking the maximum possible return from the position divided by the notional risk (max loss) that could be realized in the trade. This return is then annualized for the year.
  • Ask Price
    The ask price is the most competitive price of stock or an option at which a seller is willing to sell. Conversely, this is the price that the stock or option may be purchased at when a market order is used. [click to read more]
  • Assign
    Shares are assigned when the option contract holder (buyer) exercises their right to either purchase or sell shares at the agreed strike price. The assignment is sent to the seller who must fulfill the obligation. [click to read more]

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