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.
