Options Trading Glossary: 50+ Terms Explained (A–Z)
Plain-English definitions for the terms you’ll run into trading options. Use your browser’s find function (Ctrl/Cmd+F) or the strategy links below to jump straight to a term. Where a term has its own deep-dive article, we’ve linked it. A Assignment When the seller (writer) of an option is required to fulfill the contract — selling shares (short call) or buying shares (short put) at the strike price — because the option holder exercised their right. See options assignment risk for when this is likely to happen and how to manage it. ...