A form of investing that involves buying and selling options contracts to speculate on future price movements of underlying assets.

A contract that gives the holder the right to buy an underlying asset at a specified price before a certain date.

A contract that gives the holder the right to sell an underlying asset at a specified price before a certain date.

An options trading strategy that involves buying and selling options of the same class on the same underlying asset with different strike prices or expiration dates.

A strategy that involves buying a call and a put option with the same strike price and expiration date, allowing profit from volatility.

Similar to a straddle, but involves buying a call and a put option with different strike prices, requiring a larger price movement for profitability.

Metrics that measure the sensitivity of an option's price to various factors, including Delta, Gamma, Theta, and Vega.

A Greek that indicates how much an option's price is expected to change per one-dollar change in the underlying asset's price.

A Greek that measures the rate of change of Delta for a given change in the underlying asset's price.

A Greek representing the time decay of an option, indicating how much the option's price decreases as it approaches expiration.

A Greek that measures an option's sensitivity to changes in the volatility of the underlying asset.

The process of identifying, assessing, and prioritizing risks, and implementing strategies to minimize their impact on trading.

The process of estimating potential returns from an investment based on various market conditions and strategies.

The study of market trends, indicators, and conditions to inform trading decisions and strategy development.

A statistical measure of the dispersion of returns for a given security or market index, indicating the level of risk.

The ease with which an asset can be bought or sold in the market without affecting its price.

A risk management strategy that involves taking an offsetting position in a related security to reduce potential losses.

The act of invoking the right to buy or sell the underlying asset as specified in an options contract.

A term describing options that have intrinsic value; for calls, when the underlying price is above the strike price.

Options that have no intrinsic value; for calls, when the underlying price is below the strike price.

Options that have a strike price equal to the current price of the underlying asset.

A listing of all available options contracts for a given security, including strike prices and expiration dates.

The process by which an options seller is required to fulfill the terms of the contract when the buyer exercises their option.

An options strategy where an investor sells call options on an asset they already own, generating income while limiting upside potential.

A strategy where an investor sells call options without owning the underlying asset, exposing them to potentially unlimited risk.