This page is a starting point for those who are looking to build their trading vocabulary and better understand trading terms which are used frequently by active stock traders in the market. There’s no substitute for experience though, so don’t stop learning beyond the definitions! If you find you need more help with your trading, be sure to check out the trading courses we offer.
Option Trading Terminology
Click the links below to learn more about each trading term.
- Call Option
- Put Option
- Strike Price
- Option Chain
- Option Expiration
- Option Assignment
- Option Premium
- Open Interest of an Option
- Implied Volatility of an Option
- Implied Volatility Rank – IV Rank
- Mini Options
- Naked Option
- Delta – Option Greeks
- Gamma – Option Greeks
- Theta – Option Greeks
- Vega – Option Greeks
- Probability of Expiring
- Probability of Touch
- Beta Weighting
- Theoretical Price of an Option
- Fade Trade
- Weekly Options (Weeklies)
- In the Money (ITM) Option – Intrinsic Value
- At the Money (ATM) Option
- Out of The Money (OTM) Option – Extrinsic Value
Option Trading Strategies
Click the links below to learn more about each option trading strategy.
- Naked Option
- Synthetic Long Position
- Synthetic Short Position
- Covered Call
- Naked Call
- Covered Put
- Naked Put
- Collar – Option Strategies
- Vertical Spread
- Iron Condor – Option Strategies
- Calendar Spread
- Straddle – Option Strategies
- Strangle – Option Strategies
- Jade Lizard – Option Strategies
- Condor – Option Strategies
- Butterfly – Option Strategies
Stock Trading Terminology
Please be sure to visit our chart patterns page for more technical trading descriptions. Click the links below to learn more about each trading term.
- Day Trading
- Swing Trading
- Capitulation
- Consolidation
- IPO
- Measured Move
- Overbought
- Oversold
- Short Selling – Selling Short
- Support and Resistance
- Stock Gaps
- Trend Lines
- Parabolic Uptrend
- Volume
- Volatility
