35 lines
2.2 KiB
Plaintext
35 lines
2.2 KiB
Plaintext
980 Glossary
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Stop-Limit Order: similar to a stop order, the stop-limit order becomes a limit
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order, rather than a market order, when the security trades at the price specified
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on the stop. See also Stop Order.
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Straddle: the purchase or sale of an equal number of puts and calls having the same
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terms.
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Strangle: a combination involving a put and a call at different strikes with the same
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expiration date.
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Strategy: with respect to option investments, a preconceived, logical plan of position
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selection and follow-up action.
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Striking Price: see Exercise Price.
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Striking Price Interval: the distance between striking prices on a particular under
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lying security. For stocks, the interval is normally 2.5 points for lower-priced stocks
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and 5 points for higher-priced stocks. For indices, the interval is either 5 or 10
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points. For futures, the interval is often as low as one or two points.
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Structured Product: a combination of securities and possibly options into a single
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security that behaves like stock and trades on a listed stock exchange. Structured
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products are created by many of the largest financial institutions (banks and bro
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kerage firms). Many of the more popular ones are known by their acronyms, cre
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ated by the institutions that issued them: MITTS, TARGETS, BRIDGES, LINKS,
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DINKS, ELKS, and PERCS. See also PERCS.
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Subindex: see Narrow-Based.
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Suitable: describing a strategy or trading philosophy in which the investor is operat
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ing in accordance with his financial means and investment objectives.
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Support: a term in technical analysis indicating a price area lower than the current
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price of the stock, where demand is thought to exist. Thus, a stock would stop
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declining when it reached a support area. See also Resistance.
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Synthetic Put: a strategy constructed by shorting the underlying instrument and
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buying a call. The resulting position has the same profit and loss characteristics as
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a long put option.
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Synthetic Stock: an option strategy that is equivalent to the underlying stock. A long
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call and a short put is synthetic long stock. A long put and a short call is synthetic
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short stock.
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Technical Analysis: the method of predicting future stock price movements based
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on observation of historical stock price movements. |