Options Terms

  1. Negative Carry

  2. Net Option Premium

  3. Netback

  4. Netfile

  5. Netting

  6. Neutral

  7. New York Board Of Trade - NYBOT

  8. New York Futures Exchange - NYFE

  9. New York Mercantile Exchange - NYMEX

  10. NFA Compliance Rule 2-43b

  11. Nick Leeson

  12. Night Cycle

  13. No Dealing Desk

  14. Nominal Quotation

  15. Non-Deliverable Forward - NDF

  16. Non-Equity Option

  17. Non-Hydraulic Fracturing

  18. Non-Member Trader

  19. Non-Open Market

  20. Non-Qualified Stock Option - NSO

  21. Noncallable

  22. Noncommercial Trader

  23. Nonfinancial Asset

  24. Noon Average Rate Contract - NARC

  25. Normal Profit

  26. North Sea Brent Crude

  27. Note Against Bond Spread - NOB

  28. Notional Value

  29. NYSE Amex Equities

  30. NYSE Arca

  31. OEX

  32. Offset

  33. Offsetting Transaction

  34. Oil ETF

  35. Omega

  36. Omnibus Account

  37. On Track

  38. One-Touch Option

  39. Online Trading

  40. OPEC Basket

  41. Open

  42. Open Interest

  43. Open Outcry

  44. Opening Transaction

  45. Operational Efficiency

  46. Option

  47. Option Agreement

  48. Option Chain

  49. Option Class

  50. Option Cycle

  51. Option Disclosure Document

  52. Option Income Fund

  53. Option Margin

  54. Option Premium

  55. Option Pricing Theory

  56. Option Schedule

  57. Option Series

  58. Option-Adjusted Spread (OAS)

  59. Optionable Stock

  60. Options Backdating

  61. Options Clearing Corporation - OCC

  62. Options Contract

  63. Options Industry Council - OIC

  64. Options On Futures

  65. Options Price Reporting Authority - OPRA

  66. Options Roll Up

  67. Order Book Official

  68. OTC Options

  69. Out Of The Money - OTM

  70. Outperformance Option

  71. Outright Futures Position

  72. Outright Option

  73. Over-Hedging

  74. Overhang

  75. Overnight Index Swap

  76. Overwrite

  77. Overwriting

  78. Pacific Exchange - PCX

  79. Palladium

  80. Paper Profit (Paper Loss)

  81. Parity Price

  82. Participatory Notes

  83. Path Dependent Option

  84. Pay/Collect

  85. Payment Option ARM

  86. Pegging

  87. Perfect Hedge

  88. Performance Shares

  89. Period Certain

  90. Periodic Interest Rate

  91. Perpetual Option - XPO

  92. Perpetual Preferred Stock

  93. Philadelphia Semiconductor Index - SOX

  94. Philadelphia Stock Exchange - PHLX

  95. Phoenix Dollars

  96. Physical Delivery

  97. Physical Option

  98. Piggyback Warrants

  99. Pin Risk

  100. Pinning the Strike

Hot Definitions
  1. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following:
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option is purchased and the lower premium option is sold - both at the same time. The higher the debit spread, the greater the initial cash outflow the investor will incur on the transaction.
  3. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious debt when government leaders use borrowed funds in ways that don't benefit or even oppress citizens. Some legal scholars argue that successor governments should not be held accountable for odious debt incurred by earlier regimes, but there is no consensus on how odious debt should actually be treated.
  4. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the acquiring company will make an offer for the outstanding shares.
  5. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by additional investment would not warrant the expense. A harvest strategy is employed when a line of business is considered to be a cash cow, meaning that the brand is mature and is unlikely to grow if more investment is added.
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will be executed at a specified price (or better) after a given stop price has been reached. Once the stop price is reached, the stop-limit order becomes a limit order to buy (or sell) at the limit price or better.
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