Calls
This option gives the buyer the right to buy 100 shares at a specified price.
Call
This option gives the buyer the right to sell 100 shares at a specified price.
What is a put?
Most standard equity option contracts control this many shares.
What is 100?
This Greek measures how much an option price changes for a $1 move in the stock.
What is delta?
Buying a call is generally considered this type of market outlook.
What is bullish?
The price at which shares may be purchased with a call option.
What is the Strike Price?
Buying a put is generally used when an investor expects this.
What is the stock will go down?
The last day an option can be exercised is called this.
What is Expiration?
This is the amount paid by the buyer to purchase an option.
What is premium?
Buying a stock while simultaneously selling a call is known as this strategy.
What is a covered call?
A call option is considered in the money when the stock price is this relative to the strike price.
What is higher?
A put option is in the money when the stock price is this relative to the strike price.
What is lower?
An option with no intrinsic value but time remaining is said to have this type of value.
What is time?
This Greek measures how quickly time decay affects an option’s value.
What is theta?
Buying both a call and a put with the same strike price and expiration is called this.
What is a long straddle?
Selling a call without owning the underlying stock is known as this.
What is naked selling or shorting?
Investors often buy puts to provide this type of protection for a stock portfolio.
What is downside or hedge?
Options generally lose value as expiration approaches because of this phenomenon.
What is decay?
Higher expected future price movement generally causes option premiums to do this.
What is increase?
A strategy that limits both upside profit and downside risk by owning stock, buying a put, and selling a call is called this.
What is a collar?
The maximum profit for a long call is generally considered this.
What is unlimited?
The maximum gain on a long put occurs if the stock falls to approximately this price.
What is zero?
This style of option may be exercised any time before expiration.
What is American-style?
This Greek estimates how much Delta will change when the stock price changes.
What is Gamma?
Simultaneously buying one option and selling another of the same type with different strike prices is generally known as this type of spread.
What is a vertical spread?