Here are some terms that we use throughout the posts:
- AMC = After Market Close
- BMO = Before Market Open
- ET = Eastern Time … where our offices are located
- [] = what’s in between is optional .. example: Buy [more] PUTs… the “more” would only apply if you already owned PUTs (i.e. “adding”) .. otherwise it just means to Buy PUTs as an initial position.
- LOCAL <bottom or top> = a “bottom” or “top” for the surrounding time … if referring to intraday activity, it might be a bottom/top for the surrounding few hours or for the day … if referring to a daily event, it might be a bottom/top for the surrounding weeks or months … and so on.
- BE = Break Even … no profits, but no loss either!
- OE = Options Expiration .. the third Friday of every Month
- HOD = High Of Day … the highest price traded for the current day for a specific stock (or option or index or future)
- LOD = Low Of Day … the lowest price traded for the current day for a specific stock (or option or index or future)
- MM = Market Maker … A broker-dealer firm that accepts the risk of holding a certain number of shares of a particular security in order to facilitate trading in that security. Each market maker competes for customer order flow by displaying buy and sell quotations for a guaranteed number of shares. Once an order is received, the market maker immediately sells from its own inventory or seeks an offsetting order. This process takes place in mere seconds.
- PM = Pre-Market –> BMO
- AH = After Hours –> AMC
- Options Terminology: In-The-Money (ITM), At-The-Money (ATM), Out-of-The-Money (OTM)
- S/T, I/T, L/T = Short-, Intermediate-, and Long- Term == hour(s), day(s), week(s)
- GOM = Gap Open Magnet … the theory that Gaps want to be filled and the other end of the Gap acts as a Magnet after the Gap has taken place. The GOM Trade takes place during the Open.
- Triple witching refers to the expirations of index futures, index options, and stock options on the same day.
- Quadruple witching refers to when market index futures, market index options, stock options, and stock futures all expire on the same day.
Keep checking back here whenever we use a term that you do not know.