The TradeHacker Language Cheat Sheet Option - A contract that gives the holder the right to buy or sell the underlying symbol at a specified price for a specific period of time. Call Option - An option contract that gives the holder the right to buy the underlying symbol at a specified price for a specific period of time. Put Option - An option contract that gives the holder the right to sell the underlying symbol at a specified price for a specific period of time Long - Buying a stock or option. Short - Selling a stock or option. Options Chain - The screen within your broker's platform that displays a stocks available expiration cycles, strike prices and put/call options. Strike Price - Specific price that a symbol can be purchased (Call) or sold (Put) by the option holder upon exercise of the option contract. At-The-Money (ATM) - An option is considered ATM when the stock price is equal to (or near) the strike price, In-The-Money (ITM) - An option is considered ITM when the stock price is above the strike price (Call Option), or below the strike price (Put Option). Out-of-The-Money (OTM) - An option is considered OTM when the stock price is below the strike price (Call Option), or above the strike price (Put Option), Theta - One of the four primary Option Greeks. A theoretical value that refers to the decay of an option as time passes. Expiration Cycle - Each symbol has numerous periods of expiration. We call each of those periods an “expiration cycle” Days To Expiration (DTE) - Number of days until an option contract expires. Optimal Time Frame - The desired number of Days to Expiration that we like to enter trades. Os www.navigationtrading.com 10f3Break-even - As it relates to an options spread. This is the price level at which there would be no profit or loss at the time of trade expiration. Implied Volatility (IV) - The estimated volatility (movement) of a symbol's price. Implied Volatility Percentile (IVP or 1V%) - Measures the % of days that were below the current IV over a specific period of time. Implied Volatility Rank (IVR) - The current IV level in comparison to its high and low levels over a specified period Put Cal - A Calendar Spread using Put Options Calll Cal - A Calendar Spread using Call Options Put Diag - A Diagonal Spread using Put Options Calll Diag - A Diagonal Spread using Call Options SCV - Short Call Vertical Spread LCV - Long Call Vertical Spread SPV - Short Put Vertical Spread LPV- Long Put Vertical Spread Fly - Short for Butterfly Spread NavigationTrendTrading (NTT) - One of our trading systems, focused on trading the trend Buy-the-Dip (BtD) - One of our NTT strategies Sell-the-Rip (StR) - One of our NTT strategies Johnny Cash (JC) - One of our NTT strategies TGIF - “Thank God It’s Friday’ - This is the name of one of our Double Calendar Strategies as we always use Friday as one of the expiration cycles. Q www.navigationtrading.com 20f3Dynamic Double Calendar (DDC) - The name of one of our Double Calendar Strategies Monster Calendar - The name of one of our Calendar Strategies Revised Enhanced Double Diagonal (REDD) - The name of one of our Double Calendar Strategies Iron Duck (ID) - This is what we call one of our option strategies because it kind of looks like a duck on the risk profile graph Beak Profit or Duck Beak - The price level of the Iron Duck above the long call Duck Head - The price level of the Iron Duck between the short put and short call. This is where we achieve max profit at the time of trade expiration Woodpecker - This is what we call one of our Butterfly Spread strategies because it kind of looks like a woodpecker on the risk profile graph Hedge Hog - This is what we call one of our option selling strategies because it kind of looks like Sonic The Hedge Hog on the risk profile graph, And, itis sort of a “hedging strategy" Vertigo - This is what we call one of our trading strategies. It's a combination of a Vertical Spread and a Diagonal Spread Bunker - This is what we call one of our hedging strategies. g www.navigationtrading.com 30f3