Glossary

A trader’s right, without obligation, to buy or sell a financial asset at a specific, pre-determined price during a specific time period.

A listing of all options for a specific stock. 

A collection of options which have the same underlying security.

A collection of calls and puts that have the same unit of trading, expiration and strike prce on the same underlying security.

A clearing firm collectively owned by the major exchanges of the listed options.

Refers to the trade orders sent by brokers to market makers. 

A mathematical model for determining prices where a security is overbought or oversold. By identifying the extreme high and low prices, an oscillator can issue buy and sell signals when market activity nears either level.

When the current price of the underlying security is below the current strike price of the option.

A daily bar chart pattern where the security’s high is higher than the previous trading day.

Securities that are traded in a medium (such as a Dealer Network) other than a formal exchange.