Condor Spread
January 1, 2001
Definition: A strategy that is used to earn limited profits with little risk, regardless of market movements, that has a bear and a bull spread. Similar to a butterfly spread except that the strike prices on the short call and short put are different.
Related Articles:
- Strike Prices - Increase Your Odds by 99% 011906
- Bull Spreads - Bagging a 66% Return on Lexar 100705
Related Terms:
|
Sell to Open
January 1, 2001
Definition: A phrase used by brokerages that represents the opening of a short position.
Related Terms:
|
Alligator Spread
January 1, 2001
Definition: A term referring to an unprofitable spread regardless of encouraging market movements. This trouncing is due entirely to large commissions charged upon the investments. "See ya later alligator."
Related Terms:
|
Glossary of Option Terms: American Option
January 1, 2001
American Option
Definition: An option that can be exercised anytime during its life, the majority of exchange-traded options are American.
Related Articles:
- American Options, European Options & Synthetic Options: Threefold Profit Potential
Related Terms:
|
Glossary of Option Terms: AMEX
January 1, 2001
AMEX
Definition: American Stock Exchange. Located in New York and handling around 10% of all securities traded in the United States, the American Stock Exchange is the third largest stock exchange by trading volume.
The AMEX was known as the "curb exchange" until 1921 and was once the strongest competitor of the NYSE. Since then it has merged with the Nasdaq and all trading done on this exchange is in exchange-traded funds, derivatives and small-cap stocks.
Related Articles:
- Options Trading Strategy: A Five-Question Screen to Find the Perfect Option
- Shorting Crude Oil - Totally Risk-Free Profits
Glossary of Option Terms: Rho
January 1, 2001
Rho
Definition: Measures sensitivity of an option to a change in interest rates.
Related Terms:
|
Glossary of Option Terms: Asian Option
January 1, 2001
Asian Option
Definition: Depends on the average price of the underlying asset over the life of the option rather than the price at its maturity will determine the payout. Protects the buyer from the volatility risk that comes with the options market.
Related Terms:
|
Glossary of Option Terms: Asian Tails
January 1, 2001
Asian Tails
Definition: A specific feature in Asian Options. The "tail" of the Asian option kicks in if the option price falls below a specified average before expiration. Once this has begun, the strike price becomes a set point/reference price to save the buyer from a continuing fall in value for that option.
Related Terms:
|
Glossary of Option Terms: Asset Class
January 1, 2001
Asset Class
Definition: Exists to provide structure to the vast array of financial instruments available in the markets. They are specified categories for investments such as stocks, bonds, real estate, or cash.
Assets in the same class usually exhibit the same characteristics, are subject to the same regulations and may behave similarly in the markets.
Related Articles:
- Basic Trading Rules: The Four Rules of All "Smart Money"
- Portfolio Position Sizing: The "10% Rule" for Safe Option Profits
Related Terms:
|
Glossary of Option Terms: At the Money
January 1, 2001
At the Money
Definition: An option is "at the money" when the strike price of the option equals the market price of its underlying security. An example, if Nike is trading at $75, then the Nike 75 call option would be "at the money," essentially at a break-even point.
Related Articles:
- Market Entry Strategy: Three Ways To Grab A Better Entry Price Than "At The Market"
- Options On ETFs - Increased Safety and Profit Potential
- The Backspread Options Strategy - A Trade With Unlimited Profit Potential
- Options Strangle - How to Strangle Profits Out of an Imperfect Market
Related Terms:
|
Hear It From Our Premium Members...
~Dexter L., Jonesboro, GA
-
Recent Articles
Tune Out The Retail Doomsayers… These Firms Could Bust This Season’s Trend
Don’t Just Wear It… Buy It: This Commodity Is Inching Towards An Excellent Buy Level
With “Black Friday” Just Hours Away, Here Are Some Retailers You Can Put In Your Portfolio
With A Changing Of The Political Guard, Now Is The Time To Harness The Profit Potential Of Wind Power
Recent Smart Profits Blog Posts
What Others Have To Say...
I sold ½ of the stock per your recommendation, which returned my original investment.
I sold the remaining stock under my regular account on 4/13/2008 for $32.19 and a gain of over $4000.
On May 21, 2008, I sold remaining shares in my IRA account at $39.75 for a gain of over $5,000.
Thanks for your recommendation on this stock."
~R. M. Raga
