Option Cycle

Key takeaways – An option cycle (or expiration cycle) is the set of months in which a listed option class has standard monthly expirations.…

Options Chain

An options chain (also called an option table or chains) is a complete list of every option contract available for a particular underlying security,…

Option Adjusted Spread Oas

Key takeaways – The option-adjusted spread (OAS) is the constant spread added to a benchmark discount curve (typically Treasury spot rates) that, after adjusting…

Optionable Stock

Key takeaways – An optionable stock is a publicly traded equity for which exchange-listed options exist and can be traded. – Not every public…

Option Premium

Key takeaways – An option premium is the market price a buyer pays and a seller receives for an options contract. – Premiums are…

Option Pool

An option pool is a block of company shares reserved to be issued later as stock options (or other equity awards) to employees, advisors,…

Option Margin

Option margin is the cash or securities an investor must deposit with their broker as collateral when writing (selling) option contracts. The margin requirement…

Option Class

• An option class groups together all calls (one class) or all puts (a separate class) listed on an exchange for the same underlying…

Optimum Currency Area Oca Theory

Optimum Currency Area (OCA) theory asks a simple but powerful question: under what conditions will two or more geographic or economic regions be better…

Optimization

Optimization is the process of adjusting a system’s parameters or choices to increase desirable outcomes (for example, returns, efficiency or conversions) and decrease undesirable…