Bearish
An adjective describing an opinion or outlook that expects a decline in price, either by the general market or by an underlying stock, or both
Friday, October 1, 2010
Average Down
Average Down
To buy more of a security at a lower price, thereby reducing the holder's average cost. (Average Up: to buy more at a higher price.)
To buy more of a security at a lower price, thereby reducing the holder's average cost. (Average Up: to buy more at a higher price.)
Automatic Exercise
Automatic Exercise
A protection procedure whereby the Options Clearing Corporation attempts to protect the holder of an expiring in-the-money option by automatically exercising the option on behalf of the holder.
A protection procedure whereby the Options Clearing Corporation attempts to protect the holder of an expiring in-the-money option by automatically exercising the option on behalf of the holder.
At-the-money
At-the-money
An option is at-the-money if the strike price of the option is equal to the market price of the underlying security.
An option is at-the-money if the strike price of the option is equal to the market price of the underlying security.
Assignment
Assignment
The receipt of an exercise notice by an option writer (seller) that obligates him to sell (in the case of a call) or purchase (in the case of a put) the underlying security at the specified strike price.
The receipt of an exercise notice by an option writer (seller) that obligates him to sell (in the case of a call) or purchase (in the case of a put) the underlying security at the specified strike price.
Arbitrage
Arbitrage
The process in which professional traders simultaneously buy and sell the same or equivalent securities for a riskless profit.
The process in which professional traders simultaneously buy and sell the same or equivalent securities for a riskless profit.
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