The world's largest options exchange. The Chicago Board Options Exchange (Cboe) was founded in 1973 with contracts focusing on individual equities,...
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Active Investing
A hands-on approach requiring an individual to act in the role of the portfolio manager. The goal of active investing is to beat the average...
Units of Risk
Or "R Unit," a unit of risk is a concept used to dampen the emotional strain of measuring trading performance in dollars. It is represented as a...
Yield Farming
In decentralized finance (DeFi), yield farming is a process that allows a cryptocurrency holder to lock up their holdings and receive rewards from...
Volatility
A statistical measurement of the dispersion of returns for a given security or market index. In general terms, the higher the volatility, the...
Vega
A part of a group of measurements known as the "Greeks" which are used in options pricing. Vega is the Greek that measures an option's sensitivity...
Value Investing
A strategy for investment that involves choosing stocks that appear to be under or overvalued relative to their intrinsic or book value. Value...
Theta
A part of a group of measurements known as the "Greeks" which are used in options pricing. Also called the time decay of an option, theta is a...
Synthetic Short
An strategy for options trading designed to imitate a short stock position. A synthetic short is created by selling at-the-money calls and buying...
Strangle
An options strategy involving holding both a call and a put option with the same expiration date of the same underlying asset (similar to a...
Treasury Inflation Protected Security
TIPS are Treasury bonds that are indexed to an inflationary gauge to protect investors from inflation-related decline in purchasing power. In...
Straddle
An options strategy involving the purchase of a put and a call option for the same expiration date and strike price on the same underlying...