Glossary
annualized basis A calculation of return on an option strategy, adjusted to reflect that return as if the position had been open for 1 year.
at the money (ATM) The status of an option when its strike price is equal to the stock’s current market value.
average down A technique for reducing net basis in stock as part of a rescue strategy, By purchasing shares at the current market price, the overall basis in the stock is reduced so that option strategies can be employed to create a net profitable outcome.
call An option providing the buyer with the right, but not the obligation, to purchase 100 shares of a specified stock at a specified strike price and by an expiration date, and obligating a seller to deliver 100 shares at a fixed strike ...
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