Cash Settlement

This is a measure of Historical Volatility computed as the annualized standard deviation of returns over a period of days (20, 30, 90 days). See also Implied Volatility & Historical volatility

If you are new to the Thinkorswim platform, it can be a little overwhelming with all the bells and whistles and tabs. One of the things that can be a little tricky at the outset is figuring out how to buy to open and sell to close ( enter & exit) Options trades.  But first…

The point at which a strategy produces no profit and no loss.

The price change in an option for every point move in the underlying Stock/ETF. Put options have negative deltas.  See Also: Delta Neutral

These are Option contracts that have intrinsic value. A call option is ITM if the market price of the underlying asset is greater than the strike price of the option. A put is ITM if the price of the underlying asset is less than the strike price. In the image below, “A” marks the In…

This is a measure of a stock’s volatility relative to the S&P 500 Index. High Beta stocks have high volatility. Stocks that have a beta reading of 1.00 or greater tend to move faster or are more volatile than the S&P index. And stocks that have a beta less than 1.00 tend to move slower…