European Style Option

The expiration cycle basically refers to the months available for a set of options. An example of an expiration cycle is March, June, September and December.

This is basically the level of volatility reflected in the current options prices. Each options contract has a unique level of implied volatility that is computed using an options pricing model. The Implied Volatility (IV) is fluid and consistently changing. When the IV is high, it indicates that the option premiums are expensive. When the…

This is a large equity trade consisting of 100,000 or more shares.

This is an order that you would place to offset an existing long position. For example, If you buy a call option to open a new position, you would then need to offset or close that position with a closing order. This is an order to sell-to-close.

Options sweeps that go off near the ask are usually signs of aggression and a possibility of a higher probability trade. This is due to the fact that a trade that goes off at the ask means that the trader thought it was more important to get into the trade, by hitting the ask, than…

This is an options contract, put or call, that can be exercised at any time prior to expiration. Stock, exchange-traded funds, and some index options also settle American-style. The alternative is the European Style Option which can only be exercised at expiration.