Glossary

Helpful Resources About Trading Stocks & Options

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Buy long a stock: trader wants the asset to go higher for a profit

Sell short a stock: trader wants the asset to go lower for a profit

Selling short a stock entails trader to borrow a stock from the brokerage for a small interest fee and returns the stock to the brokerage firm when they buy it back and no longer have the position.

Terms on selling short:

ETB: Means easy to borrow

HTB: Means hard to borrow

NTB: Means not to borrow

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REMOTE TRADING ROOM

Glossary of Option Strategies

L- Long Call

Buy call- right to be long underlying asset

U-Short Call

Sell call- obligation to be short underlying asset at call buyer's discretion

L-Long Put

Buy put- right to be short underlying asset

U-Short Put

Sell put- obligation to be long underlying asset at buyer's discretion

L-Bull Spread

Buy call with low strike price, sell higher strike price call

L-Bear Spread

Buy put with high strike price, sell lower strike price

L-Long Butterfly

Buy one low and high strike price option; sell two middle price options

L-Short Butterfly

Buy one low and high strike price option; buy two middle options

L-Long Condor

Buy low and high priced call (or puts) sell two different middle price calls

L-Short Condor

Sell low and priced calls (or puts) buy two different middle price puts

L-Long Straddle

Buy put and call with same strike price

U-Short Straddle

Sell put and call with same strike price

L-Long Strangle

Buy put and call with different strike price

U-Short Strangle

Sell put and call with different strike price

U-Call Ratio Spread

Buy lower strike price call, sell higher strike price calls

U-Put Ratio Spread

Buy higher strike price put, sell lower strike price puts

L-Call Ratio Back Spread

Sell lower strike price call, buy higher strike price call

L- Put Ratio Back Spread

Sell higher strike price put, buy lower strike price put