I’ve complied list of jargons to help refresh the memory or if you don’t know what a term means. There so many short acronyms I sometimes forget so this list helps me keep it all in one place.
|ATM - at the money||Share price and strike price are the same|
|ITM - in the money||A call option is in the money when the strike price is below the spot price.|
|OTM - out the money||A call option is out of the money when the strike price is above the spot price of the underlying security.|
|ROI - Return on investment||The percentage of profits on your invested amount. Formula: Profits / Investment = ROI|