9. ๐Ÿ“– Glossary/Terminology

๐Ÿšง This page is currently under construction. Bear with us if things are a little out of place! ๐Ÿšง


๐ŸŒŠ Flow Legend
  • Cross: A cross trade occurs when a broker executes matched buy and sell orders for the same security across different client accounts and reports them on an exchange. These transactions are typically happening peer-to-peer, and are often the result of one MM offloading a position to another.
  • Floor: A trade executed by a floor trader, an exchange member who executes transactions from the floor of the exchange, exclusively for their own account https://www.investopedia.com/terms/f/floortrader.asp
  • Sweep: A sweep-to-fill order is a type of market order in which a broker splits the order into numerous parts to take advantage of the order sizes at the best prices currently offered on the market

Flowsymbols

You can hover over these symbols for a description, as well as the associated icon. For deatils on the methodology in which these trades are labeled please reference this ๐Ÿ“– OPRA PDF, starting from page 22.

  • Alert โ—: This contract’s trading volume exceeds the current open interest.

  • Sync ๐Ÿ”„: This trade is part of a multi leg options/stock strategy.

  • Swap Vertical โฌ‡๏ธโฌ†๏ธ: This trade is part of a multi leg options strategy.

  • Warning โš ๏ธ: The size of this trade exceeds the current open interest.


๐Ÿ”ฎ Dark Pool Side Legend
  • AA BUY: Above-ask Buy
  • BB SELL: Below-bid Sell
๐Ÿ”ฎ Dark Pool Sold/Trade Codes: polygon.io
  • AveragePriceTrade: A trade where the price reported is based upon an average of the prices for transactions in a security during all or any portion of the trading day.

  • ContingentTrade: A transaction where the execution of the transaction is contingent upon some event.

  • PriorReferencePrice: A sale condition that identifies a trade based on a price at a prior point in time, i.e., more than 90 seconds prior to the time of the trade report. The execution time of the trade will be the time of the prior reference price.

  • QualifiedContingentTrade: A transaction consisting of two or more component orders executed as agent or principal where the execution of one component is contingent upon the execution of all other components at or near the same time and the price is determined by the relationship between the component orders and not the current market price for the security.

For more on Contingent Orders


General Options Terms, Slang and Definitions

โ„น You will find some additional information regarding certain emojis on this page. Emojis are an estimation and far from an exact science: do not trade off emojis alone.

โ„น๏ธ For more, visit the Investopedia Market Dictionary

  • Ask: ‘The ask price represents the minimum price that a seller is willing to take for that same security.’ Also see Bid. The ๐Ÿ›๏ธ Ask-side emoji signifies that the transaction(s) were on the ask side. When consider an alert with the Ask-side emoji, always verify within the alert itself!

  • Bagger: An options play that returns 100%; with 5-Bagger representing a 500% gain and 10-Bagger representing a 1000% gain. When referring to baggers only whole numbers are considered.

  • Bid: ‘The bid price represents the maximum price that a buyer is willing to pay for that same security. Also see Ask. The ๐Ÿฆด Bid-side emoji signifies that the transaction(s) were on the bid side. When consider an alert with the Ask-side emoji, always verify within the alert itself!

  • BTO/BTC: “Buy to open, or BTO, is a term used by brokerages to represent the establishment of a new (opening) long call or put position in options.” “Buy to close, or BTC, is used when a trader is net short an option position and wants to exit that open position.” You can find out more information here: 4 Ways to Trade Options. Also see STO/STC.

  • Cash Covered Put: “Selling (also called writing) a cash covered put option allows an investor to potentially own the underlying security at a future date and at a much more favorable price. In other words, the sale of put options allows market players to gain bullish exposure, with the added benefit of potentially owning the underlying security at a future date and at a price below the current market price.” “๐ŸŽˆ A good selling opportunity:” implies a heightened likelihood that the whale(s) are writing puts or calls.

  • Covered Call: “A covered call refers to a financial transaction in which the investor selling call options owns an equivalent amount of the underlying security. To execute this an investor holding a long position in an asset then writes (sells) call options on that same asset to generate an income stream.” “๐ŸŽˆ A good selling opportunity:” implies a heightened likelihood that the whale(s) are writing puts or calls.

  • ๐Ÿ”ฎ Dark pool: “A dark pool is a privately organized financial forum or exchange for trading securities. Dark pools allow institutional investors to trade without exposure until after the trade has been executed and reported.”

  • Directional: ๐Ÿ‚ ๐Ÿป Directional trading refers to strategies based on the investor’s view of the future course of something: either the overall financial market or a particular security. Their assessment of the direction will be the sole determining factor in whether the investor decides to sell or buy.

  • In the money: “In the money (ITM) is an expression that refers to an option that possesses intrinsic value. A call option is in the money (ITM) if the market price is above the strike price. A put option is in the money if the market price is below the strike price. An option can also be out of the money (OTM) or at the money (ATM). In-the-money options contracts have higher premiums than other options that are not ITM.”

  • LEAPS: “๐Ÿข LEAPS, or Long-term Equity Anticipation Securities, are publicly traded options contracts with expiration dates that are longer than one year, and typically up to three years from issue.” As such, it’s not uncommon to see traders refer to 9 months+ as the threshold period for labeling something as a ‘LEAPS’ contract.

  • Multileg: “A multi-leg options order is an order to simultaneously buy and sell options with more than one strike price, expiration date, or sensitivity to the underlying asset’s price. Multi-leg options orders allow traders to carry out a complex options strategy that involves several different options contracts with a single order. Multi-leg options orders save traders time and usually money, as well. Traders will often use multi-leg orders for complex trades where there is greater uncertainty in the trend direction.” “A common multi-leg options order is a straddle, wherein a trader buys both a put and a call at or near the current price.” Also see Spread.

  • Out of the money: “Out of the money (OTM) is an expression used to describe an option contract that only contains extrinsic value. An OTM option only has extrinsic value. A call option is OTM if the underlying price is trading below the strike price of the call. A put option is OTM if the underlying’s price is above the put’s strike price. An option can also be in the money or at the money.

  • Reversal: A ๐Ÿ™ƒ reversal is a change in the price direction of an asset. A reversal can occur to the upside or downside. Following an uptrend, a reversal would be to the downside. Following a downtrend, a reversal would be to the upside. Reversals are based on overall price direction and are not typically based on one or two periods/bars on a chart.

  • Runner: A runner is an alert that is currently at a 10% or greater gain relative to the alerted ask price. The runner feed can be found on the mobile app and on the website here. Keep in mind that an alert that becomes a ‘runner’ stops qualifying once it is no longer at a greater than 10% gain.

  • Spread: “An options spread is an options trading strategy in which a trader will buy and sell multiple options of the same type โ€“ either call or put โ€“ with the same underlying asset. These options are similar, but typically vary in terms of strike price, expiry date, or both.” You can find more information here: Which Vertical Option Spread Should You Use? Also see Multileg.

  • STO/STC: “Sell to open, or STO, is the opening of a short position on an option by a trader.” “Sell to close, or STC, indicates that an options order is being placed to exit a trade.” You can find out more information here: 4 Ways to Trade Options. Also see BTO/BTC.

  • Theta gang: “What is theta gang? Simply put, these are options trading strategies that capitalize on the fact that the prices of options decay over time. Instead of trying to predict if a stock will go up or down, you simply play the time gameโ€“ collecting premium which turns to profit as time goes by, then rinsing and repeating.”