TOP 0-9 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
| Top search results | ALGO
The name we have given an algorithm that calculates future price of a stock based on some proprietary math. We place the ALGO lines on a stock chart in Yellow. ALGO gives you "hidden pivots, resistance, support tops, bottom levels before a stock gets there. Its success rate is in excess of 70%
Island Reversal
An occurrence in technical analysis where a stock price will gap up/down, trade higher than this price, and then gap down/up below the initial price.
Put Option
1. 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.
2. The act of exercising a put option.
Fixed Income Arbitrage
A hedge fund strategy that attempts to profit from arbitrage opportunities in interest rate securities.
Statistical Arbitrage
A profit situation arising from pricing inefficiencies between securities. Investors identify the arbitrage situation through mathematical modeling techniques.
Adjusted Exercise Price
1. An option's strike price after adjustments have been made for stock splits to its underlying security.
2. A term used to describe the strike prices for options written on Ginnie Mae pass through certificates.
Triple Witching (Hour)
An event that occurs when the contracts for stock index futures, stock index options, and stock options all expire on the same day. Triple Witching Days happen four times a year: the third Friday of March, June, September, and December. This phenomenon is sometimes referred to as "Freaky Friday."
Aggregate Exercise Price
The strike price of a put or call option multiplied by its contract size. Aggregate exercise prices are used to determine the dollar amount required should the option be exercised.
Accumulation/Distribution
A momentum indicator that associates changes in price and volume. It is based on the premise that a price move is more significant with larger volume.
Automatic Exercise
A procedure implemented to protect an option holder where the Option Clearing Corporation will automatically exercise an "in the money" option for the holder.
Excise Tax
An indirect tax charged on the sale of a particular good.
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TOP 0-9 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Lotto Ticket
Lotto Ticket buy. A lotto ticket buy is a buy where the rewards can be huge, but the odds of winning are slim. This type of buy is done sometimes because the prize associated with a win, mitigates the entire loss of the investment.
ie. A stock gets a piece of property next to a large oil field. No one has drilled it and they are about too. The odds of success/fail are higher than 50/50 because of the adjacent field. So you buy the lotto ticket.
ie. A company has a huge strike next door to a property that has no drill program planned and no money but is a Proximity play on the big strike. The company is worthless, other than for its proximity to the existing play.
Lotto Ticket plays are extremely high risk, but with extremely high reward if they turn out to be more than proxy plays. TA on these stocks are literally non existent because they follow the results of an entirely different company. So you cannot use TA on the proximity stock, and you have no FA, ergo Lottery Ticket
Asset-or-Nothing Put Option
An option payoff that is equal to the asset's price if the asset is below the strike price, otherwise the payoff is zero.
Cashless Exercise
A transaction that is used when exercising employee stock options (ESO). Essentially, what you do here is borrow enough money from your broker to exercise the options. You then simultaneously sell enough shares to pay for the purchase, taxes, and broker commissions.
Early Exercise
When an option or other security is exercised prior to its maturity date.
Exercise
An action by a stockholder taking advantage of a privilege offered by a company or other financial institution. This includes warrants, options, and other exotic financial instruments.
Rescission
The right of an individual involved within a contract to return to the identical state as before they entered into the agreement, due to courts not recognizing the contract as legally binding.
CIS
Compulsive Idiot Syndrome
This is when you keep buying a stock as it falls. You can't help yourself and you find you are losing more and more money. The only cure known to man is a Frontal Lobe removal or Lobotomy. Your thought process remains about the same, but you know longer know you are an Idiot.
Bullet Trade
The act of purchasing an "in the money" put option so that the buyer can capitalize on a bear market by effectively shorting a stock without waiting for an uptick.
Debt Exchangeable for Common Stock - DECS
A debt instrument that provides the holder with coupon payments in addition to an embedded short put option and a long call on the issuing company's stock.
Dividend Enhanced Convertible Stock - DECS
Preferred stock that provides the holder with premium dividends in addition to an embedded short put option and a long call on the issuing company's stock.
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TOP 0-9 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
In the Money
For a call option, in-the-money is when the option's strike price is below the market price of the underlying stock. For a put option, in-the-money is when the strike price is above the market price of the underlying stock.
Index Option
A call or put option on a financial index.
Naked Put
A put option whose writer does not have a short position in the stock on which he or she has written the put. Sometimes referred to as an "uncovered put."
Put
1. 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.
2. The act of exercising a put option.
Underwater
1. The condition a call option is in when its strike price is higher than the market price of the underlying stock.
2. The condition a put option is in when its strike price is lower than the market price of the underlying stock.
Also known as "out of the money."
Arbitrage Pricing Theory - APT
An alternative to the CAPM, APT differs in its assumptions and explanation of risk factors associated with the risk of an asset.
Binomial Option Pricing Model
A simple model used to price options that reduces possibilities of price changes, removes the possibility for arbitrage, assumes a perfectly efficient market, and shortens the duration of the option.
Breadth Indicator
A specific type of indicator that uses advancing and declining issues to determine the amount of participation in the movement of the stock market.
Cash and Carry Trade
A trading strategy that involves the simultaneous trading of two similar securities in order to recognize an arbitrage profit. Also known as "basis trading" or "buying the basis."
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TradingChief.com: Canada Small Cap Forex
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