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April 21, 2019 
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O - R
A to C - D to H - I to N - O to R - S to Z

This term, pronounced as three separate letters, is Wall Street shorthand for Standard & Poor's 100 stock index.

Odds is the predicted profits divided by the predicted losses obtained by projecting the stock price randomly into the future using the Statistical Volatility (SV). The prediction stops at the expiration of the earlist expiring option leg.

Offer Down
The change of the offer of the market related to a downward price movement at that specific time.

The lowest price at which a person is willing to sell.

Off-floor Trader
A trader who does not trade on the actual floor of an organized futures of stock exchange.

To liquidate a futures position by entering an equivalent but opposite transaction. To offset a long position, a sale is made; to offset a short position, a purchase is made.

The option in question is trading at its exercise price (also referred to as at-the-money)..

Open Order
An order to buy or sell a security at a specified price, valid until executed or canceled.

Open Outcry
A system of trading where an auction of verbal bids and offers is performed on the trading floor. This method is slowly disappearing as exchanges become automated.

Open Trades
A current trades that is still held active in a customer's account.

The period at the beginning of the trading session at an exchange.

Opening Call
A period at the opening of a futures market in which the price for each contract is established by outcry.

Opening Price
The range of prices at which the first bids and offers were made or first transactions were completed.

Opportunity Costs
The theoretical cost of using your capital for one investment versus another.

A security that represents the right, but not the obligation, to buy or sell a specified amount of an underlying security (stock, bond, futures contract, etc.) at a specified price within a specified time.

Option Holder
The buyer of either a call or put option.

Option Premium
This is the price of an option.

Option Writer
The seller of either a call or put option.

A ticket or voucher representing long or short securities and options.

Order Flow
The volume of orders being bought or sold on the exchanges.

An option whose exercise price has no intrinsic value.

Out-of-the-Money Option (OTM)
A call option is out-of-the-money if its exercise or strike price is above the current market price of the underlying security. A put option is out-of-the-money if its exercise or strike price is below the current market price of the underlying securi ty.

A term used to describe a security or option whose current price is not justified.

Paper Trading
The ability to simulate a trade without actually putting up the money for the purpose of gaining additional trading experience.

The stated or "nominal" value of a bond (typically $1,000) that is paid to the bondholder at maturity.

Perceived Risk
The theoretical risk of a trade in a specific time frame.

Performance Based
A system of compensation in which a broker receives fees based on their performance in the marketplace

Points apply to security prices. In the case of shares, one point indicates $1.00 per share. For bonds, , one point means 1% of par value. Commodities differ from market to market.

Point Spread
The price movement required for a security to go from one "full point" level to another (i.e. stock goes up or down $1).

The total of a trader's open contracts.

Position Delta
The sum of all positive and negative deltas in a hedged position.

Position Limit
The maximum number of open contracts in a single underlying instrument.

The amount of cash that an option buyer pays to an option seller

Price of a share of common stock on the date shown. Highs and lows are based on the highest and lowest intra-day trading price.

Price / Earnings Ratio (PE)
A technical analysis tool for comparing the prices of different common stocks by assessing how much the market is willing to pay for a share of each corporation's earnings. PE is calculated by dividing the current market price of a stock by the earnin gs per share.

The initial purchase price of a bond on which interest is earned.

Private Company
A company that issues private stock and is not publicly traded.

Probability of Profit
Probability of Profit is the probability that the predicted stock price falls within the option trade's profit zones. The predicted stock price distribution is computed by projecting the stock price randomly into the future using the SV. The prediction stops at the expiration of the earlist expiring option leg.

Public Company
A company that issues stocks to be traded on the public market.

Put Option
An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time. The put option buyer hopes the price of the shares will drop by a specific date w hile the put option seller (or writer) hopes that the price of the shares will rise, remain stable, or drop by an amount less than their profit on the premium by the specified date.

An order that must be filled as soon as it reaches the trading floor at the price specified, or be canceled immediately.

The price being offered or bid by a market maker or broker-dealer for a particular security.

Quoted Price
Refers to the price at which the last sale and purchase of a particular security or commodity took place.

Ratio Backspread
A delta neutral spread where an uneven amount of contracts are bought and sold with a ratio less than 2 to 3. Optimally no net credit or net debit occurs.

Ratio Call Spread
A bearish or stable strategy in which a trader buys 2 higher strike calls and sell1 lower strike call. This strategy offers limited risk and unlimited profit potential.

Ratio Put Spread
A bullish or stable strategy ion which a trader buys 1 higher strike put and sells two lower strike puts. This strategy offers limited risk and unlimited profit potential.

Data received from a quote service as the prices change.

Relative Strength
A stock's price movement over the past year as compared to a market index.

Relative Strength Index (RSI)
An indicator used to identify price tops and bottoms.

A price level the market has a hard time breaking through to the upside.

The income profit made on an investment.

Reward-Risk Ratio
The mathematical relationship between the maximum potential risk and maximum potential reward of a trade.

Reversal Stop
A stop that, when hit, is a signal to reverse the current trading position, i.e., from long to short. Also known as stop and reverse.

Priced higher than expected.

The potential financial loss inherent in the investment.

Risk Graph
A graphic representation of risk and reward on a given trade as prices change.

Risk Manager
A person who manages risk of trades in a portfolio by hedging their trades.

Risk Profile
A graphic determination of risk on a trade. This would include the profit and loss of a trade at any given point for any given time frame.

Procedure by which a long or short position is offset by an opposite transaction.

Running Stops
Something which when quoted, floor traders use to move the market. When stops are bunched together, traders may move the market in order to activate stop orders and propel the market further.

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