Options Trading, Style, Uncovered Options, Naked Options, bid, ask, price, qqq, spy, trading system, options, system, signals

Bid, Ask, Cover, Assignment, Roll

Bid price - a price which a buyer is willing to pay for an option or a stock.

Ask Price - a price at which a seller is willing to sell an option or a stock.

Contingent order - an order that will be executed only when the price of the underlying security for an option order falls to a certain level.

Cover (covering short position) - covering short position is buying an option back, which was previously sold short. The short position closes by this transaction.

Assignment - Assignment is a receipt of an exercise notice by an option writer (seller) which obligates him/her to purchase in the case of a put, or sell in the case of a call, the underlying security at a specified strike price.

Automatic Exercise - Automatic Exercise, exercises an option for the option owner by the Options Clearing Corporation automatically if an in-the-money option is expiring.

Roll Forward (Roll Out, Rolling) - buying option with longer-term expiration and closing out the near-term expiration options.

Roll Up - buying options at a higher strike price and closing out lower strike options.

One single winning trade
could pay for the membership for years to come.

DISCLAIMER: THIS INFORMATION IS INTENDED FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE ANY FINANCIAL ADVICE. RISK IS INVOLVED IN ALL STYLES OF MONEY MANAGEMENT. Uncovered options trading involves greater risk than stock trading. You absolutely must make your own decisions before acting on any information obtained from this Website.

The return results represented on the web site are based on the premium received for the selling options short and do not reflect margin. It is recommended to contact your broker about margin requirements on uncovered options trading before using any information on this web site. Use our "Trade Calculator" to recalculate our past performance in relation to the margin requirements, brokerage commissions and other trading related expenses. Past performance is not indicative of future results.