A plain-English reference for the language used across our research.
- Option
- A contract giving the right (not the obligation) to buy (call) or sell (put) 100 shares at a set strike before expiration.
- Call
- The right to buy the underlying at the strike. Buyers are typically positioning for upside.
- Put
- The right to sell the underlying at the strike. Buyers are typically positioning for downside or hedging.
- Strike price
- The fixed price at which the option can be exercised.
- Expiration
- The date the option expires. After it, the contract is either exercised or worthless.
- Premium
- The price paid for the option. Total premium on a print = price × contracts × 100.
- DTE (days to expiration)
- How many days remain until expiration. Short DTE = more time-sensitive.
- Open interest (OI)
- The number of contracts currently outstanding (open). Updates once daily, overnight.
- Volume
- The number of contracts traded during the day. Resets each morning.
- In the money (ITM)
- A call with strike below the stock price, or a put with strike above it — it has intrinsic value.
- At the money (ATM)
- Strike roughly equal to the current stock price.
- Out of the money (OTM)
- A call with strike above the stock price, or a put with strike below it — no intrinsic value yet, only time value.
- Intrinsic value
- The in-the-money portion of an option's price.
- Time value (extrinsic value)
- The part of the premium reflecting time remaining and volatility, not intrinsic value.
- Implied volatility (IV)
- The market's expectation of future movement, baked into the option's price. Higher IV = pricier options.
- The Greeks
- Sensitivities of an option's price: Delta (move per $1 in the stock), Gamma (how delta changes), Theta (time decay per day), Vega (sensitivity to IV changes).
- Bid / Ask
- The highest price buyers will pay (bid) and the lowest sellers will accept (ask). The gap is the spread.
- At the ask / at the bid
- A trade filled at the ask is buyer-initiated (aggressive buying); at the bid is seller-initiated.
- Above ask (AA)
- A trade filled at a price higher than the displayed ask — typically a large order or sweep filling through all the contracts at the ask and paying up. A sign of maximum urgency.
- Midpoint (mid)
- A fill between the bid and ask, often from a limit order seeking price improvement — a more patient, less aggressive trade.
- Fill aggression
- Where a trade printed relative to the bid/ask, from least to most aggressive for a buyer: at bid → midpoint → at ask → above ask.
- Mark
- The mid-price between bid and ask, used as a fair-value reference.
- Sweep
- An order split across multiple exchanges and filled fast — a sign of urgency.
- Block
- A single large, often privately negotiated trade printed as one lot — associated with institutional size.
- Unusual options activity (UOA)
- Options volume that is abnormally large versus a contract's norm; a screening flag, not a verdict.
- Opening vs. closing
- Whether a trade creates a new position (opening) or exits one (closing). Confirmed via next-day open interest.
- Aggressor
- The side that initiated the trade by crossing the spread.
- Dark pool
- A private venue where large trades execute away from public exchanges, often where blocks are negotiated.
- Spread
- A position combining multiple options legs (e.g., buying one strike, selling another) to shape risk and cost.
- Covered call
- Selling a call against shares you own to collect premium.
- Hedge
- A position taken to offset risk in another position, not to express a fresh directional view.
For research and educational purposes only. Not investment advice.