Capital Preservation
Meaning ⎊ The strategy of prioritizing the protection of current trading capital to ensure long-term sustainability.
Delta Management
Meaning ⎊ Monitoring and adjusting portfolio delta to maintain a specific risk exposure.
Pricing Variables
Meaning ⎊ The fundamental inputs required for calculating an option theoretical price.
Option Pricing Model
Meaning ⎊ A computational formula utilized to estimate the fair theoretical price of an option based on key inputs.
Normal Distribution
Meaning ⎊ A statistical distribution where data is clustered symmetrically around a mean value.
Option Selling Strategy
Meaning ⎊ A strategy focused on collecting premiums by selling option contracts.
Futures Contract
Meaning ⎊ A binding agreement to trade an asset at a set price on a designated future date.
Black Scholes Model
Meaning ⎊ A theoretical framework used to calculate the fair market price of European options based on several variables.
Pin Risk
Meaning ⎊ Uncertainty about exercise or assignment when an option is at the money near expiration.
Assignment
Meaning ⎊ The notification process informing an option seller that the counterparty has exercised their right to the contract.



















