A term used to describe an in-the-money option when the option's total premium is equal to its intrinsic value. Such an option moves 1 point for every 1 point move in the underlying stock, and is said to be "worth parity" or "trading for parity".
Date on which the dividend on a stock is actually paid to shareholders of record. Compare to ex-dividend date and record date.
‘Price/Earnings To Growth’ is a ratio used to determine a stock’s value by considering its earnings growth. It is calculated by the P/E Ratio divided by the annual EPS growth. The PEG ratio is favored by some over the P/E ratio because it considers the company’s growth.
Philadelphia Stock Exchange (PHLX)
Located in Philadelphia, the PHLX is one of four U.S. exchanges that trade equity options.
The risk to a trader who is short an option that, at expiration, the underlying stock price is equal to (or "pinned to") the short option's strike price. If this happens, he will not know whether he will be assigned on his short option. The risk is that the trader doesn't know if he will have no stock position, a short stock position (if he was short a call), or a long stock position (if he was short a put) on the Monday following expiration and thus be subject to an adverse price move in the stock.
Plus Tick Or Up Tick Rule
A term used to describe a trade made at a price higher than the preceding trade.
The minimum change in the handle of a stock or option price. For stock or options in the U.S., a point means $1. If the price of an option goes from $2.00 to $7.00, it has risen 5 points.
Long or short stock or options in an account.
For a single trader, client, or firm, the maximum number of allowable open option contracts on the same underlying stock. The limits are established by the exchanges.
Establishing a position in stocks or options and holding it for an extended period of time. Compare to day trading.
A class of stock (as distinguished from common stock) with a claim on a company's earnings before dividends may be made on the common stock. Preferred stock usually has priority over common stock if the company is liquidated.
The price of an option.
Profit/Loss (P/L) Day
P/L Day is the amount of money made or lost on your position from last night's close to the current mark plus any intra-day profit and loss. You can see the current price for any stock or option in your position on the 'Position Statement'. You can see the original execution price for any stock or option in your position by going to the monitor tab and left clicking on the P/L Day dollar amount.
Profit/Loss (P/L) Open
P/L Open is the amount of money made or lost on your position since the inception of the trade. You can see execution price for any stock or option in your position by going to the Monitor tab and left clicking on the P/L Open dollar amount.
Profit/Loss (P/L) Year-To-Date (YTD)
P/L YTD is the amount of money made or lost in a particular underlying security in the current calendar year. It includes the P/L for all open positions and any closed positions made for a specific stock or index done in a calendar year.
The lowest interest rate commercial banks charge their largest and most credit-worthy corporate clients.
A ratio of the trading volume of put options to call options. It is used to gauge investor sentiment.
A put option gives the owner of the put the right, but not the obligation, to sell the underlying stock at the option's strike price. Someone who is short the put is obligated to take delivery of (buy) the underlying stock at the option's strike price from the owner of the put if the owner exercises his right.
Pacific Exchange (PCX)
Located in San Francisco, the PCX is one of four U.S. exchanges that trade equity options.
Profit/Loss (P/L) %
P/L % calculates the percentage of money made or lost as a function of your execution price. This takes P/L open as the numerator and your execution price as the denominator. Please keep in mind that this will only calculate the P/L of single options and thus, excludes spreads.
Price To Earnings Multiple(P/E Ratio)
Is the market price divided by the company’s earnings per share. P/E ratio is a type of stock valuation methodology used in determining the price paid for a company’s earnings.
A limit order that is only partially executed because the total specified number of shares of stock or options could not be bought or sold at the limit price.
Profit/Loss (P/L) Differential (Diff)
To view historical account information for a specified date range, navigate to the account statement sub tab and enter the desired date range. The Profits and Losses section will display gains or losses for only that date range. This allows the user an easy way to view profit and loss for a specific time period. This value, Profit and Loss Differential (P/L Diff), is calculated as follows: P/L Diff = P/L YTD of the end date - P/L YTD of the start date, where start date and end date refer to the border values of time interval filter currently applied to Account Statement. In case of P/L YTD of the start date is N/A system shall use P/L YTD of the end date value as the P/L Diff value.