The lowest price a seller is willing to accept for an option contract.
The obligation placed on an option seller to fulfill the terms of the contract when the buyer exercises.
An option whose strike price is equal to or very close to the current price of the underlying asset.
The broker or clearing process of automatically exercising eligible ITM options at expiration.
Total account value including cash plus marked value of all open positions.
The weighted average execution price across one or multiple fills for an order.
The blended entry price of a position after multiple buys and sells.
An options strategy that profits from a decline in the underlying asset price.
The highest price a buyer is willing to pay for an option contract.
A mathematical model used to calculate the theoretical fair price of European-style options.
The underlying asset price at which an options trade neither makes nor loses money at expiration.
A three-strike options strategy that profits when the underlying stays near the middle strike at expiration.
A term-structure condition where near-term implied volatility is higher than longer-dated implied volatility.
Portfolio delta adjusted relative to a benchmark (such as SPY) using beta.
An order instruction used to open a new long options position.
The amount of capital currently available to open new positions under account margin rules.
An options contract that gives the buyer the right, but not the obligation, to buy the underlying asset at the strike price before expiration.
A strategy combining a covered call and a protective put to limit both upside and downside on a stock position.
A four-strike options strategy that profits when the underlying stays within a defined range.
Selling a call option against shares of the underlying stock you already own.
An options spread where the premium received from selling options exceeds the premium paid for buying options, resulting in a net credit.
A spread that uses the same strike but different expiration dates, typically selling near-term and buying longer-term options.
A term-structure condition where longer-dated implied volatility is higher than near-term implied volatility.
The number of underlying units controlled by one options contract.
Selling a put while holding enough cash to buy shares if assigned.
Broker fee charged for executing a trade, usually per contract or per order.
The effective entry cost of a position after fills and, where relevant, fees.
An options spread where the premium paid for buying options exceeds the premium received from selling options, resulting in a net debit.
The rate of change of an option price with respect to a $1 change in the underlying asset price.
A position with total portfolio delta near zero, reducing directional exposure to small underlying moves.
A spread using options with different strikes and different expirations.
Adjusting positions to reduce net directional exposure by offsetting delta.
An order that remains active only during the current trading session.
The decline of account value from a prior peak to a subsequent trough.
A simulated execution path that validates order payload and risk checks without placing a live order.
The act of an option buyer using their right to buy (call) or sell (put) the underlying at the strike price.
The date on which an options contract ceases to exist and the right to exercise expires.
The portion of an option premium above its intrinsic value, representing time value and volatility premium.
A statistically derived price range implied by options volatility over a specific timeframe.
Exercising an American-style option before its expiration date.
The cutoff date after which new buyers are not entitled to the upcoming dividend.
Average expected profit or loss per trade based on win rate and average win/loss.
The execution of an options order at a specific price.
The nearest expiration month for an options contract.
Evaluating an asset based on financial statements, earnings, revenue, and economic factors rather than price charts.
The rate of change of delta with respect to a $1 change in the underlying asset price.
A set of risk measures that describe how an option price changes relative to various factors.
The aggregate sensitivity of portfolio delta to changes in the underlying price.
A trading approach that monetizes long gamma by repeatedly rebalancing delta as price moves.
An order that stays active across sessions until filled or manually canceled (subject to broker limits).
A position taken to offset potential losses from another position.
A statistical measure of the actual price fluctuations of the underlying asset over a specific past period.
The market's forecast of the likely magnitude of price movement, derived from current option prices.
A call option with a strike price below the underlying price, or a put option with a strike price above the underlying price.
The amount by which an option is in the money; the immediate exercise value.
A four-leg strategy combining a short straddle with protective wings: sell ATM call and put, buy OTM call and put.
A four-leg strategy that combines a bull put spread and a bear call spread to profit from low volatility.
The percentage of historical days when implied volatility was lower than the current implied volatility.
A normalized measure showing where current implied volatility sits within its historical high-low range.
A position-sizing formula that estimates optimal capital allocation based on edge and payoff ratio.
Long-Term Equity Anticipation Securities; options with expirations typically one year or more in the future.
One component of a multi-part options strategy.
An order to buy or sell an option at a specified price or better.
The ease with which an option can be bought or sold without significantly affecting its price.
The collateral required by a broker to maintain a short options position or leveraged trade.
A firm or individual that provides liquidity by continuously quoting bid and ask prices for options.
The strike price at which option holders collectively would suffer the maximum financial loss at expiration.
The relationship between the current price of the underlying asset and the strike price of an option.
A fair-value estimate for an option, often based on the midpoint of bid and ask.
The maximum amount a position can lose under its payoff structure.
The maximum profit a position can achieve under its payoff structure.
The arithmetic midpoint between bid and ask prices.
An order to execute immediately at the best available price.
The process of valuing open positions using current market prices, typically mark or midpoint.
An options position sold without any offsetting position in the underlying or another option.
The amount of premium received when opening a trade where you collect more than you pay.
The amount of premium paid when opening a trade where you pay more than you receive.
Current account value after marking open positions to market and including cash.
The total number of outstanding option contracts that have not been closed, exercised, or expired.
A listing of all available option contracts for a given underlying, organized by expiration and strike price.
A call option with a strike above the underlying price, or a put option with a strike below the underlying price.
The stream of buy and sell orders entering the market across price levels and time.
Pre-trade checks that verify an order is acceptable before routing or execution.
The risk that the underlying price closes very near a strike price at expiration, creating uncertainty about assignment.
The price paid by the buyer (or received by the seller) for an options contract.
An options contract that gives the buyer the right, but not the obligation, to sell the underlying asset at the strike price before expiration.
A pricing relationship that must exist between a European put and call with the same strike and expiration.
The ratio of put volume (or open interest) to call volume, used as a market sentiment indicator.
An estimate of the probability that a position will be profitable at expiration.
An estimate of the probability that the underlying touches a specific price level before expiration.
A risk-based margin framework that sets requirements based on modeled portfolio risk rather than static rules.
The process of determining how many contracts or shares to trade based on risk limits.
Execution at a better price than the displayed quote or than the limit you entered.
Simulated trading that mirrors order workflows and P&L accounting without real capital at risk.
An order state where only part of the requested quantity is executed.
The rate of change of an option price with respect to changes in the risk-free interest rate.
The ratio comparing the potential profit of a trade to its potential loss.
Closing an existing options position and simultaneously opening a new one with a different strike and/or expiration.
The ratio of potential profit to maximum risk, usually expressed as a percentage.
A directional options structure that combines a long call and short put (bullish) or long put and short call (bearish).
Profit or loss locked in from closed positions after execution costs.
A position created by selling an option to open, obligating you to fulfill the contract if assigned.
An options strategy involving the simultaneous purchase and sale of two or more options of the same class.
A strategy involving the simultaneous purchase (or sale) of a call and put at the same strike price and expiration.
A strategy involving the simultaneous purchase (or sale) of an OTM call and OTM put with the same expiration.
The predetermined price at which the underlying asset can be bought (call) or sold (put) when the option is exercised.
An options position that replicates the payoff of another instrument, such as a stock position.
The difference between expected execution price and actual fill price.
An order instruction used to open a new short options position.
The strike difference between the long and short legs of a vertical spread.
The rate of change of an option price with respect to the passage of time, measured in dollars per day.
The reduction in an option's value as time passes, driven by the erosion of extrinsic value.
The portion of an option premium that exceeds its intrinsic value; synonymous with extrinsic value.
A colloquial term for accelerated time-decay impact as expiration approaches.
An order instruction that defines how long an order remains active.
A chronological log of orders, fills, modifications, and execution outcomes.
The financial asset (stock, ETF, index) on which an options contract is based.
Options trading volume that significantly exceeds normal levels, potentially indicating informed or institutional activity.
Current profit or loss on open positions based on mark-to-market valuation.
The rate of change of an option price with respect to a 1% change in implied volatility.
A spread using options with the same expiration but different strike prices.
A rapid decline in implied volatility, typically occurring after a known event like earnings.
The pattern where implied volatility varies across different strike prices for the same expiration.
The number of option contracts traded during a specific period, typically one day.
The total sensitivity of a position or portfolio to changes in implied volatility.
A 3D view of implied volatility across both strike prices and expiration dates.
The percentage of closed trades that finish with positive realized P&L.