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Téma

Options

A derivative that gives the right, but not the obligation, to buy (call) or sell (put) an underlying asset at a predetermined price and time.

Basic concepts

Call option

An option giving the right to buy the underlying asset at the strike price until the expiration date. The buyer of the call speculates on growth, the seller (writer) has the obligation to sell the shares if the option is exercised.

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Put option

An option giving the right to sell the underlying asset at the strike price by the expiration date. The buyer of the put protects against a decline, the seller (writer) has the obligation to buy the shares if the option is exercised.

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Premium

The price that the buyer pays for the option and the seller receives for the obligation.

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Strike price

The price at which the buyer of an option has the right to buy (call) or sell (put) the underlying asset.

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Expiration

The date on which the option expires and the option right expires.

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Assignment

Assigning the obligation to fulfill an obligation under an option, such as delivering shares (call) or purchasing them (put).

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Margin

Capital that the broker blocks as collateral for opening or holding a position.

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Margin Call

A broker's call to replenish the account capital due to insufficient coverage of open positions.

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Exercise

The exercise of the option right to buy (call) or sell (put) the underlying asset at the strike price.

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Naked Option

Selling an option without holding a corresponding position in the underlying asset, exposing the trader to significant risk.

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Implied volatility

The expected future volatility of the underlying asset, as determined by the market, determines the price of the option.

Basic concepts

Options Trading Glossary and Strategies

Complete Options Glossary: Strategies, Terms, Greek Letters, and Option Selling Techniques. Clear and easy to understand, for both beginners and advanced traders. Learn to trade options effectively.

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Options Trading Terminology & Strategy Quiz

Discover key options strategies, understand Greek letters, and learn effective techniques for options trading. Clear and concise, suitable for both beginners and advanced traders.

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