Options Trading Glossary
Basic Terms
- Call Option
- The right to buy an asset at a specified price within a set time period.
- Put Option
- The right to sell an asset at a specified price within a set time period.
- Strike Price
- The price at which the option can be exercised.
Advanced Terms
- Implied Volatility
- A measure of expected price movement based on option prices.
- Delta
- The rate of change in option price relative to the underlying asset price.
- Theta
- The rate of decline in option value due to time decay.