397 lines
6.8 KiB
Plaintext
397 lines
6.8 KiB
Plaintext
Index
|
||
American-exercise options
|
||
Arbitrageurs
|
||
At-the-money (ATM)
|
||
Backspreads
|
||
Bear call spread
|
||
Bear put spread
|
||
Bernanke, Ben
|
||
Black, Fischer
|
||
Black-Scholes option-pricing model
|
||
Boxes
|
||
building
|
||
Bull call spread
|
||
strengths and limitations
|
||
Bull put spread
|
||
Butterflies
|
||
long
|
||
alternatives
|
||
example
|
||
short
|
||
iron
|
||
long
|
||
short
|
||
Buy-to-close order
|
||
Calendar spreads
|
||
buying
|
||
“free” call, rolling and earning
|
||
rolling the spread
|
||
income-generating, managing
|
||
strength of
|
||
trading volatility term structure
|
||
buying the front, selling the back
|
||
directional approach
|
||
double calendars
|
||
ITM or OTM
|
||
selling the front, buying the back
|
||
Calls
|
||
buying
|
||
covered
|
||
entering
|
||
exiting
|
||
long ATM
|
||
delta
|
||
gamma
|
||
rho
|
||
theta
|
||
tweaking greeks
|
||
vega
|
||
long ITM
|
||
long OTM
|
||
selling
|
||
Cash settlement
|
||
Chicago Board Options Exchange (CBOE) Volatility Index
|
||
®
|
||
Condors
|
||
iron
|
||
long
|
||
short
|
||
long
|
||
short
|
||
strikes
|
||
safe landing
|
||
selectiveness
|
||
too close
|
||
too far
|
||
with high probability of success
|
||
Contractual rights and obligations
|
||
open interest and volume
|
||
opening and closing
|
||
Options Clearing Corporation (OCC)
|
||
standardized contracts
|
||
exercise style
|
||
expiration month
|
||
option series, option class, and contract size
|
||
option type
|
||
premium
|
||
quantity
|
||
strike price
|
||
Credit call spread
|
||
Debit call spread
|
||
Delta
|
||
dynamic inputs
|
||
effect of stock price on
|
||
effect of time on
|
||
effect of volatility on
|
||
moneyness and
|
||
Delta-neutral trading
|
||
art and science
|
||
direction neutral vs. direction indifferent
|
||
gamma, theta, and volatility
|
||
gamma scalping
|
||
implied volatility, trading
|
||
selling
|
||
portfolio margining
|
||
realized volatility, trading
|
||
reasons for
|
||
smileys and frowns
|
||
Diagonal spreads
|
||
double
|
||
Dividends
|
||
basics
|
||
and early exercise
|
||
dividend plays
|
||
strange deltas
|
||
and option pricing
|
||
pricing model, inputting data into
|
||
dates, good and bad
|
||
dividend size
|
||
Estimation, imprecision of
|
||
European-exercise options
|
||
Exchange-traded fund (ETF) options
|
||
Exercise style
|
||
Expected volatility
|
||
CBOE Volatility Index®
|
||
implied
|
||
stock
|
||
Expiration month
|
||
Ford Motor Company
|
||
Fundamental analysis
|
||
Gamma
|
||
dynamic
|
||
scalping
|
||
Greeks
|
||
adjusting
|
||
defined
|
||
delta
|
||
dynamic inputs
|
||
effect of stock price on
|
||
effect of time on
|
||
effect of volatility on
|
||
moneyness and
|
||
gamma
|
||
dynamic
|
||
HAPI: Hope and Pray Index
|
||
managing trades
|
||
online, caveats with regard to
|
||
price vs. value
|
||
rho
|
||
counterintuitive results
|
||
effect of time on
|
||
put-call parity
|
||
strategies, choosing between
|
||
theta
|
||
effect of moneyness and stock price on
|
||
effects of volatility and time on
|
||
positive or negative
|
||
taking the day out
|
||
trading
|
||
vega
|
||
effect of implied volatility on
|
||
effect of moneyness on
|
||
effect of time on
|
||
implied volatility (IV) and
|
||
where to find
|
||
Greenspan, Alan
|
||
HOLDR options
|
||
Implied volatility (IV)
|
||
trading
|
||
selling
|
||
and vega
|
||
In-the-money (ITM)
|
||
Index options
|
||
Interest, open
|
||
Interest rate moves, pricing in
|
||
Intrinsic value
|
||
Jelly rolls
|
||
Long-Term Equity AnticiPation Securities® (LEAPS®)
|
||
Open interest
|
||
Option, definition of
|
||
Option class
|
||
Option prices, measuring incremental changes in factors affecting
|
||
Option series
|
||
Options Clearing Corporation (OCC)
|
||
Out-of-the-money (OTM)
|
||
Parity, definition of
|
||
Pin risk
|
||
borrowing and lending money
|
||
boxes
|
||
jelly rolls
|
||
Premium
|
||
Price discovery
|
||
Price vs. value
|
||
Pricing model, inputting data into
|
||
dates, good and bad
|
||
dividend size
|
||
“The Pricing of Options and Corporate Liabilities” (Black & Scholes)
|
||
Put-call parity
|
||
American exercise options
|
||
essentials
|
||
dividends
|
||
synthetic calls and puts, comparing
|
||
synthetic stock
|
||
strategies
|
||
theoretical value and interest rate
|
||
Puts
|
||
buying
|
||
cash-secured
|
||
long ATM
|
||
married
|
||
selling
|
||
Ratio spreads and complex spreads
|
||
delta-neutral positions, management by market makers
|
||
through longs to shorts
|
||
risk, hedging
|
||
trading flat
|
||
multiple-class risk
|
||
ratio spreads
|
||
backspreads
|
||
vertical
|
||
skew, trading
|
||
Realized volatility
|
||
trading
|
||
Reversion to the mean
|
||
Rho
|
||
counterintuitive results
|
||
effect of time on
|
||
and interest rates
|
||
in planning trades
|
||
interest rate moves, pricing in
|
||
LEAPS
|
||
put-call parity
|
||
and time
|
||
trading
|
||
Risk and opportunity, option-specific
|
||
finding the right risk
|
||
long ATM call
|
||
delta
|
||
gamma
|
||
rho
|
||
theta
|
||
tweaking greeks
|
||
vega
|
||
long ATM put
|
||
long ITM call
|
||
long OTM call
|
||
options and the fair game
|
||
volatility
|
||
buying and selling
|
||
direction neutral, direction biased, and direction indifferent
|
||
Scholes, Myron
|
||
Sell-to-open transaction
|
||
Skew
|
||
term structure
|
||
trading
|
||
vertical
|
||
Spreads
|
||
calendar
|
||
buying
|
||
“free” call, rolling and earning
|
||
income-generating, managing
|
||
strength of
|
||
trading volatility term structure
|
||
diagonal
|
||
double
|
||
ratio and complex
|
||
delta-neutral positions, management by market makers
|
||
multiple-class risk
|
||
ratio
|
||
skew, trading
|
||
vertical
|
||
bear call
|
||
bear put
|
||
box, building
|
||
bull call
|
||
bull put
|
||
credit and debit, interrelations of
|
||
credit and debit, similarities in
|
||
and volatility
|
||
wing
|
||
butterflies
|
||
condors
|
||
greeks and
|
||
keys to success
|
||
retail trader vs. pro
|
||
trades, constructing to maximize profit
|
||
Standard deviation
|
||
and historical volatility
|
||
Standard & Poor’s Depositary Receipts (SPDRs or Spiders)
|
||
Straddles
|
||
long
|
||
basic
|
||
trading
|
||
short
|
||
risks with
|
||
trading
|
||
synthetic
|
||
Strangles
|
||
long
|
||
example
|
||
short
|
||
premium
|
||
risk, limiting
|
||
Strategies and At-Expiration Diagrams
|
||
buy call
|
||
buy put
|
||
factors affecting option prices, measuring incremental changes in
|
||
sell call
|
||
sell put
|
||
Strike price
|
||
Supply and demand
|
||
Synthetic stock
|
||
strategies
|
||
conversion
|
||
market makers
|
||
pin risk
|
||
reversal
|
||
Technical analysis
|
||
Teenie buyers
|
||
Teenie sellers
|
||
Theta
|
||
effect of moneyness and stock price on
|
||
effects of volatility and time on
|
||
positive or negative
|
||
risk
|
||
taking the day out
|
||
Time value
|
||
Trading strategies
|
||
Value
|
||
Vega
|
||
effect of implied volatility on
|
||
effect of moneyness on
|
||
effect of time on
|
||
implied volatility (IV) and
|
||
Vertical spreads
|
||
bear call
|
||
bear put
|
||
box, building
|
||
bull call
|
||
bull put
|
||
credit and debit
|
||
interrelations of
|
||
similarities in
|
||
and volatility
|
||
Volatility
|
||
buying and selling
|
||
teenie buyers
|
||
teenie sellers
|
||
calculating data
|
||
direction neutral, direction biased, and direction indifferent
|
||
expected
|
||
CBOE Volatility Index®
|
||
implied
|
||
stock
|
||
historical (HV)
|
||
standard deviation
|
||
implied (IV)
|
||
and direction
|
||
HV-IV divergence
|
||
inertia
|
||
relationship of HV and IV
|
||
selling
|
||
supply and demand
|
||
realized
|
||
trading
|
||
skew
|
||
term structure
|
||
vertical
|
||
vertical spreads and
|
||
Volatility charts, studying
|
||
patterns
|
||
implied and realized volatility rise
|
||
realized volatility falls, implied volatility falls
|
||
realized volatility falls, implied volatility remains constant
|
||
realized volatility falls, implied volatility rises
|
||
realized volatility remains constant, implied volatility falls
|
||
realized volatility remains constant, implied volatility remains constant
|
||
realized volatility remains constant, implied volatility rises
|
||
realized volatility rises, implied volatility falls
|
||
realized volatility rises, implied volatility remains constant
|
||
Volatility-selling strategies
|
||
profit potential
|
||
covered call
|
||
covered put
|
||
gamma-theta relationship
|
||
greeks and income generation
|
||
naked call
|
||
short naked puts
|
||
similarities
|
||
Would I Do It Now? Rule
|
||
Volume
|
||
Weeklys
|
||
SM
|
||
Wing spreads
|
||
butterflies
|
||
directional
|
||
long
|
||
short
|
||
iron
|
||
condors
|
||
iron
|
||
long
|
||
short
|
||
greeks and
|
||
keys to success
|
||
retail trader vs. pro
|
||
trades, constructing to maximize profit
|
||
Would I Do It Now? Rule |