Option Terms Overview

[vc_row][vc_column width=”1/1″][uncode_block id=”4832″][/vc_column][/vc_row][vc_row][vc_column width=”1/1″][vc_column_text text_lead=”yes”]Options are an exciting way to maximize your efforts in the markets but they do come with unfamiliar terminology which may seem confusing at first. Watch the videos below to get a better understanding of the jargon and more comfortable using it in class and in your trading.[/vc_column_text][/vc_column][/vc_row][vc_row row_height_percent=”0″ override_padding=”yes” h_padding=”2″ top_padding=”2″ bottom_padding=”0″ overlay_alpha=”50″ gutter_size=”0″ column_width_percent=”100″ shift_y=”0″ z_index=”0″][vc_column column_width_percent=”100″ gutter_size=”0″ override_padding=”yes” column_padding=”1″ overlay_alpha=”50″ shift_x=”0″ shift_y=”0″ shift_y_down=”0″ z_index=”0″ medium_width=”0″ mobile_width=”0″ width=”1/1″][vc_custom_heading]

Option Premium

Term used to describe an option’s price.[/vc_custom_heading][/vc_column][/vc_row][vc_row row_height_percent=”0″ override_padding=”yes” h_padding=”2″ top_padding=”0″ bottom_padding=”2″ overlay_alpha=”50″ gutter_size=”0″ column_width_percent=”100″ shift_y=”0″ z_index=”0″][vc_column column_width_percent=”100″ position_horizontal=”left” gutter_size=”1″ override_padding=”yes” column_padding=”1″ overlay_alpha=”50″ shift_x=”0″ shift_y=”0″ shift_y_down=”0″ z_index=”0″ medium_width=”0″ mobile_width=”0″ width=”1/1″][vc_column_text text_lead=”yes”]https://vimeo.com/498420609[/vc_column_text][/vc_column][/vc_row][vc_row row_height_percent=”0″ override_padding=”yes” h_padding=”2″ top_padding=”0″ bottom_padding=”0″ overlay_alpha=”50″ gutter_size=”1″ column_width_percent=”100″ shift_y=”0″ z_index=”0″][vc_column column_width_percent=”100″ gutter_size=”0″ override_padding=”yes” column_padding=”1″ overlay_alpha=”50″ shift_x=”0″ shift_y=”0″ shift_y_down=”0″ z_index=”0″ medium_width=”0″ mobile_width=”0″ width=”1/1″][vc_custom_heading]

Intrinsic Value

Term used to describe “in-the-money” value.[/vc_custom_heading][/vc_column][/vc_row][vc_row row_height_percent=”0″ override_padding=”yes” h_padding=”2″ top_padding=”0″ bottom_padding=”2″ overlay_alpha=”50″ gutter_size=”1″ column_width_percent=”100″ shift_y=”0″ z_index=”0″][vc_column column_width_percent=”100″ position_horizontal=”left” gutter_size=”3″ overlay_alpha=”50″ shift_x=”0″ shift_y=”0″ shift_y_down=”0″ z_index=”0″ medium_width=”0″ mobile_width=”0″ width=”1/1″][vc_column_text text_lead=”yes”]https://vimeo.com/498418536[/vc_column_text][vc_column_text text_lead=”yes”]https://vimeo.com/498416242[/vc_column_text][/vc_column][/vc_row][vc_row row_height_percent=”0″ override_padding=”yes” h_padding=”2″ top_padding=”0″ bottom_padding=”0″ overlay_alpha=”50″ gutter_size=”0″ column_width_percent=”100″ shift_y=”0″ z_index=”0″][vc_column column_width_percent=”100″ gutter_size=”0″ override_padding=”yes” column_padding=”1″ overlay_alpha=”50″ shift_x=”0″ shift_y=”0″ shift_y_down=”0″ z_index=”0″ medium_width=”0″ mobile_width=”0″ width=”1/1″][vc_custom_heading]

Extrinsic Value

Term used to describe the Time value.[/vc_custom_heading][/vc_column][/vc_row][vc_row row_height_percent=”0″ override_padding=”yes” h_padding=”2″ top_padding=”0″ bottom_padding=”2″ overlay_alpha=”50″ gutter_size=”1″ column_width_percent=”100″ shift_y=”0″ z_index=”0″][vc_column column_width_percent=”100″ position_horizontal=”left” gutter_size=”3″ overlay_alpha=”50″ shift_x=”0″ shift_y=”0″ shift_y_down=”0″ z_index=”0″ medium_width=”0″ mobile_width=”0″ width=”1/1″][vc_column_text text_lead=”yes”]https://vimeo.com/498419364[/vc_column_text][vc_column_text text_lead=”yes”]https://vimeo.com/498444243[/vc_column_text][/vc_column][/vc_row][vc_row row_height_percent=”0″ override_padding=”yes” h_padding=”2″ top_padding=”0″ bottom_padding=”0″ overlay_alpha=”50″ gutter_size=”0″ column_width_percent=”100″ shift_y=”0″ z_index=”0″][vc_column column_width_percent=”100″ gutter_size=”0″ override_padding=”yes” column_padding=”1″ overlay_alpha=”50″ shift_x=”0″ shift_y=”0″ shift_y_down=”0″ z_index=”0″ medium_width=”0″ mobile_width=”0″ width=”1/1″][vc_custom_heading]

In-the Money, Out-of-the-Money, At-the-Money

Term used to describe the relative value of the option’s strike price to the underlying’s current price.[/vc_custom_heading][/vc_column][/vc_row][vc_row row_height_percent=”0″ override_padding=”yes” h_padding=”2″ top_padding=”0″ bottom_padding=”2″ overlay_alpha=”50″ gutter_size=”1″ column_width_percent=”100″ shift_y=”0″ z_index=”0″][vc_column column_width_percent=”100″ position_horizontal=”left” gutter_size=”3″ overlay_alpha=”50″ shift_x=”0″ shift_y=”0″ shift_y_down=”0″ z_index=”0″ medium_width=”0″ mobile_width=”0″ width=”1/1″][vc_column_text text_lead=”yes”]https://vimeo.com/498420824[/vc_column_text][vc_column_text text_lead=”yes”]https://vimeo.com/498416926[/vc_column_text][vc_column_text text_lead=”yes”]https://vimeo.com/498419055[/vc_column_text][vc_column_text text_lead=”yes”]https://vimeo.com/498443605[/vc_column_text][/vc_column][/vc_row][vc_row row_height_percent=”0″ override_padding=”yes” h_padding=”2″ top_padding=”0″ bottom_padding=”0″ overlay_alpha=”50″ gutter_size=”0″ column_width_percent=”100″ shift_y=”0″ z_index=”0″][vc_column column_width_percent=”100″ gutter_size=”0″ override_padding=”yes” column_padding=”1″ overlay_alpha=”50″ shift_x=”0″ shift_y=”0″ shift_y_down=”0″ z_index=”0″ medium_width=”0″ mobile_width=”0″ width=”1/1″][vc_custom_heading]

Option Assignment

Term used to describe what automatically happens if options is held to expiration.[/vc_custom_heading][/vc_column][/vc_row][vc_row row_height_percent=”0″ override_padding=”yes” h_padding=”2″ top_padding=”0″ bottom_padding=”2″ overlay_alpha=”50″ gutter_size=”1″ column_width_percent=”100″ shift_y=”0″ z_index=”0″][vc_column column_width_percent=”100″ position_horizontal=”left” gutter_size=”3″ overlay_alpha=”50″ shift_x=”0″ shift_y=”0″ shift_y_down=”0″ z_index=”0″ medium_width=”0″ mobile_width=”0″ width=”1/1″][vc_column_text text_lead=”yes”]https://vimeo.com/498410885[/vc_column_text][vc_column_text text_lead=”yes”]https://vimeo.com/498411666[/vc_column_text][/vc_column][/vc_row][vc_row row_height_percent=”0″ override_padding=”yes” h_padding=”2″ top_padding=”0″ bottom_padding=”0″ overlay_alpha=”50″ gutter_size=”0″ column_width_percent=”100″ shift_y=”0″ z_index=”0″][vc_column column_width_percent=”100″ gutter_size=”0″ override_padding=”yes” column_padding=”1″ overlay_alpha=”50″ shift_x=”0″ shift_y=”0″ shift_y_down=”0″ z_index=”0″ medium_width=”0″ mobile_width=”0″ width=”1/1″][vc_custom_heading]

The Greeks

A description of the factors used to calculate an option’s price. NOTE: Vega is the mechanism by which the market makers inflate or deflate the value of time.[/vc_custom_heading][/vc_column][/vc_row][vc_row row_height_percent=”0″ override_padding=”yes” h_padding=”2″ top_padding=”0″ bottom_padding=”2″ overlay_alpha=”50″ gutter_size=”1″ column_width_percent=”100″ shift_y=”0″ z_index=”0″][vc_column column_width_percent=”100″ position_horizontal=”left” gutter_size=”3″ overlay_alpha=”50″ shift_x=”0″ shift_y=”0″ shift_y_down=”0″ z_index=”0″ medium_width=”0″ mobile_width=”0″ width=”1/1″][vc_column_text text_lead=”yes”]https://vimeo.com/498412929[/vc_column_text][vc_column_text text_lead=”yes”]https://vimeo.com/498416580[/vc_column_text][vc_column_text text_lead=”yes”]https://vimeo.com/498412320[/vc_column_text][vc_column_text text_lead=”yes”]https://vimeo.com/498445610[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column width=”1/1″][/vc_column][/vc_row][vc_row][vc_column width=”1/1″][vc_empty_space empty_h=”5″][/vc_column][/vc_row][vc_row][vc_column width=”1/1″][uncode_block id=”4044″][/vc_column][/vc_row]