|
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
X
Y
Z
Numerical Terms
Link
link
|
I
At The Money - The Strike nearest the current price of the Underlying.
Implied Volatility -
A measure of the volatility of the underlying stock, it is determined by using option prices currently existing in the market at the time rather than using historical data on the price changes of the underlying stock. See also Volatility.
Incremental Return Concept -
A strategy of covered call writing in which the investor is striving to earn an additional return from option writing against a stock position which he (she) has targeted to sell -- possibly at substantially higher prices.
Index -
A compilation of the prices of several common entities into a single number. See also Price-Weighted Index, Capitalization-Weighted Index.
Index Option -
An option whose underlying entity is an index. Most index options are cash-based.
Institution -
An organization, probably very large, engaged in professional investing in securities. Normally a bank, insurance company, or mutual fund.
In-the-money -
A term describing any option that has intrinsic value. A call option is in-the-money if the underlying security is higher than the striking price of the call. A put option is in-the-money if the security is below the striking price. See also Out-of-the-Money and Intrinsic Value.
Intrinsic value -
The value of an option if it were to expire immediately with the underlying stock at its current price; the amount by which an option is in-the-money. For call options, this is the difference between the stock price and the striking price, if that difference is a positive number, or zero otherwise. For put options it is the difference between the striking price and the stock price, if that difference is positive, and zero otherwise. See also In-the-Money, Time Value Premium and Parity.
|
