Cash Settlement

This is a type of options contract that can only be exercised at expiration. Most, but not all, index options settle European Style. The American Style Option has a different exercise schedule.

The holder of a physical delivery XYZ call option has the right to purchase shares of XYZ Corporation stock at the specified exercise price upon exercise prior to the expiration of the option. The holder of a physical delivery XYZ put option has the right to sell shares of XYZ Corporation at the specified exercise…

DTE means Days To Expiration. This is basically the number of days left until your Option contracts expire.  As an options trader you will want to play very close attention to the DTE when you are selecting which contract to buy or sell. The number of days to expiration can impact the profitability of a…

Options sweeps that go off near the ask are usually signs of aggression and a possibility of a higher probability trade. This is due to the fact that a trade that goes off at the ask means that the trader thought it was more important to get into the trade, by hitting the ask, than…

The exercise price setting formula for a series of delayed start options is the formula used by the options market on which the series is traded to set the exercise price for the series on the exercise price setting date. The exercise price setting formula is specified before the commencement of trading of each series…

This is also known as a Crossed Trade and it is basically a transaction/trade that is done from one broker to another ( broker to broker) rather than in the open market place. See Also Option Conversion