Stock
Unlike private companies, you can buy stock in ____ companies.
Public
If you want to speculate on a price increase, what kind of option should you use?
Call Options
If you want to speculate on a price decrease, what kind of option should you use?
Put Option
This greek models for the effect on an option when the underlying stock price changes.
Delta
This greek models for the effect of the passage of time on the options price.
Theta
The _____ ____ of a company is share value * shares outstanding.
Market cap
This sort of option is good for protecting you when you are exposed to the risk associated with owning shares of stock.
Put Option
Sell to Open a call would result in a net _____ to your account.
Credit
This greek models for the change in Delta based on change in the underlying stock price.
Gamma
This greek models for the effect of Implied Volatility on the option's price.
Vega
This is a name for a type of stock trading under $5 a share.
Penny Stock
This tells you the price that you can purchase or sell 100 shares at.
Strike
This is the last day that you can use your option.
Expiration Date
This greek models for the effect of interest rates on the option.
Rho
This greek is negative for puts and positive for calls.
Delta
Stocks are commonly grouped into ____, like the S&P 500, DOW Jones Industrial Average, and the NASDAQ.
Indices
This sort of option can be exercised on a number of different predetermined dates, but not on any date.
Bermuda Option.
This shows the amount of the option contract traded on that day.
Volume
This measures for the uncertainty the market is pricing into the underlying stock's movement.
Implied Volatility
Time decay is more potent when you are closer to this event.
Expiration
This type of analysis uses past price action and patterns to predict future stock prices.
Technical Analysis
Selling to Open is also called
Writing a Contract
This tells you the number of outstanding options contracts there are.
Open Interest
This happens when a lot of the uncertainty surrounding a future stock price is removed.
IV Crush
Options pricing is based on the assumptions that stock returns follow this sort of distribution.
Normal Distribution