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Téma

Open Interest

The number of existing (open) option contracts for a given strike and expiration. An indicator of liquidity and market interest in a given option.

Basic concepts

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Delta

It measures the sensitivity of an option to the movement of the underlying asset.

Greeks

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Gamma

It measures the change in delta depending on the movement of the underlying price.

Greeks

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Theta

It measures the time decay of an option.

Greeks

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Vega

The sensitivity of an option price to changes in volatility.

Greeks

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Rho

Sensitivity of the option price to changes in interest rates.

Greeks

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Covered Call

A strategy where a trader sells a call option while holding the underlying shares, aiming to generate income from the option premium while potentially selling the shares at the strike price.

Strategy

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Protective Put

Buying a put option as protection (insurance) against a decline in the price of a stock we own. It reduces loss if the stock falls below the strike price.

Strategy

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Spread

A combination of two options on the same underlying with different strikes or expirations.

Strategy

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Call Debit Spread

A strategy of buying and writing call options on the same underlying and expiration, when you pay a net premium.

Strategy

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Call Credit Spread

Selling and purchasing call options on the same underlying and expiring with a different strike, with the aim of obtaining a premium (income).

Strategy

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Put Debit Spread

A strategy involving buying a higher-strike put and selling a lower-strike put with the same expiration, resulting in a net debit.

Strategie

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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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