# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
This is a measure of how volatile the underlying contracts has been for the 20 trading days prior to each observation date in the data series. It is an annualized standard deviation of price changes expressed as a percentage.
This is a measure of how volatile the underlying contracts has been for the 5 trading days prior to each observation date in the data series. It is an annualized standard deviation of price changes expressed as a percentage.
This is the stock's highest closing price during the past 52 weeks.
This is the stock's lowest closing price during the past 52 weeks.
This is a measure of how volatile the underlying contracts has been for the 60 trading days prior to each observation date in the data series. It is an annualized standard deviation of price changes expressed as a percentage.
This is a measure of how volatile the underlying contracts has been for the 90 trading days prior to each observation date in the data series. It is an annualized standard deviation of price changes expressed as a percentage.
ATOP
ADVANCE DECLINE LINE
The line that measures the net daily difference between the number of advancing issues and the number of declining issues thus reflecting market breadth. It provides an indication as to the overall strength of the market.
AMERICAN DEPOSITARY RECEIPTS (ADR)
Certificates issued by a U.S. Depositary Bank, representing foreign shares held by the bank, usually by a branch or correspondent in the country of issue. One ADR may represent a portion of a foreign share, one share or a bundle of shares of a foreign corporation. If the ADR's are "sponsored," the corporation provides financial information and other assistance to the bank and may subsidize the administration of the ADR's. "Un-sponsored" ADR's do not receive such assistance. ADR's carry the same currency, political and economic risks as the underlying foreign share; the prices of the two, adjusted for the ADR/ordinary ratio, are kept essentially identical by arbitrage. American Depositary Shares (ADS) are a similar form of certification.
ANALYST
Employee of a brokerage or fund management house who studies companies and makes buy and sell recommendations on their stocks. Most specialize in a specific industry.
ANNUAL REPORT
Yearly record of a publicly held company's financial condition. It includes a description of the firm's operations, its balance sheet and income statement. SEC rules require that it be distributed to all shareholders. A more detailed version is called a 10-K.
ARBITRAGE
Profiting from differences in the price of a single security that is traded on more than one market.
ARMS INDEX
Also known as TRading INdex (TRIN):= #advancing issues/#declining issues Total up volume/total down volume and advance/decline market indicator. Less than 1.0 indicates bullish demand, while above 1.0 is bearish. The index often is smoothed with a simple moving average.
The lowest price anyone is willing to sell a specific stock or commodity at a given moment in time. Also called the offer.
This is the number of shares a seller is selling at a specified ask price. Basically, a seller is willing to sell a certain amount of shares, the price does not matter, only the number of shares the seller is offering.
ASSETS, CURRENT
The individual Current Asset line item. This item is NM for companies that do not distinguish between current and long-term assets.
ASSETS, CURRENT TOTAL
The Total Current Assets is the sum of the Cash and Equivalents plus Investments--ST Other plus Investments plus Accounts Receivable plus Inventory plus Prepayments and Advances plus Current Assets--Other.
Some companies such as Insurance companies, Banks, and Industrial companies with captive finance subsidiaries do not distinguish current and long-term assets. They report only Total Assets. For these companies the title and the COA code will be blank, the financial statement values will be zero, and the calculated values will be NM.
ASSETS, LONG TERM
The individual Long Term Asset line items. For companies that do not distinguish between current and long-term assets this will simply be an asset line item.
ASSETS, TOTAL
Total Assets is the sum of all short and long term asset categories.
ASSET TURNOVER
The Asset Turnover is calculated as the Total Revenues divided by the Average Total Assets.
Where:
Average Total Assets = Total Assets for the most recent fiscal period + Total Assets for the preceding fiscal period
2
NOTES:
1. The quarterly calculated value has been annualized to make it more readily comparable to the annual and TTM values.
2. This ratio is only calculated for companies classified as Industrial and Utility in the Market Guide database.
An option is At-The-Money if the strike price of the option equals the market price of the underlying security.
For example, if a stock is trading at 75, then the 75 option is at-the-money. You can essentially think of this as the break-even point (when you don't take into commissions and any other account transaction costs).
AUDITOR CODE
The code used by Market Guide to identify the Auditor of the company's most recent year-end financial information.
AUDITOR NAME
The name of the Auditor of the company's most recent year end financial's.
AUDITOR OPINION CODE
The Auditor Opinion Code: Qualified, Unqualified, Adverse or Disclaimer Opinion. (This item is not currently in use.)
AVERAGE DIRECTIONAL MOVEMENT INDEX (ADX)
The ADX is an indicator which was developed by Welles Wilder. It is a calculation based upon positive directional movement (+dma) and minus directional movement index (-dma). The ADX is used to measure how strong a trend is; regardless of if this trend is up or down. A high ADX measure reflects a strongly trending market and a low ADX reflects a non-trending market. In general, if you find a stock which meets the Core Swing trade Buy or the Core Swing trade Sell set up criteria and has an ADX above 35, you have a set up with great potential for large 3 to 5 day gains.
AVERAGE TRUE RANGE (ATR)
This study was developed by Welles Wilder and introduced in his book, New Concepts in Technical Trading Systems (1978). The Average True Range measures the volatility of a security.
BTOP
BACK OFFICE
Brokerage house clerical operations that support, but do not include, the trading of stocks and other securities. Includes all written confirmation and settlement of trades, record keeping and regulatory compliance.
BALANCE SHEET PRESENTATION CODE
The Balance Sheet Presentation Code specifies whether the company breaks down assets and liabilities into current and long term sections (= 1), or whether it just reports all line items under total assets and total liabilities (= 0). Insurance, Banks, and Industrial companies with captive finance subsidiaries do not segregate their balance sheets between current and long-term items and would be classified as 0.
BAR CHART
A style of chart used for technical analysis. It consists of a vertical line at the top, which indicates the high for the period a security traded at during the given time period, and the bottom represents the low. The close/last is displayed on the right side of the bar, and the open is shown on the left side of the bar.
BEAR
An investor who believes a stock or the overall market will decline. A bear market is a prolonged period of falling stock prices, usually by 20% or more. Or, anyone who takes a pessimistic view of the forthcoming long-term trend in a market. One who thinks that a market is or will soon be in a long-term downtrend.
BEAR MARKET
A long-term downtrend (a downtrend lasting months to years) in any market, especially in the stock market, characterized by lower intermediate lows (those established in a time frame of weeks to months) interrupted by lower immediate highs.
Beta is a measure of a company's common stock price volatility relative to the market. The Market Guide Beta is the slope of the 60-month regression line of the percentage price change of the stock relative to the percentage price change of the S&P 500. Beta values are not calculated if less than 24 months of pricing is available.
Up Beta is the volatility of the company's common stock price relative to the S&P 500 for the periods in which the S&P 500 goes up. Beta values are not calculated if less than 24 months of pricing is available.
Down Beta is the volatility of the company's common stock price relative to the S&P 500 for the periods in which the S&P 500 goes down. Beta values are not calculated if less than 24 months of pricing is available.
An indication by an investor, a trader or a dealer of a willingness to buy a security or commodity; the price at which an investor can sell to a broker-dealer.
This is the number of shares a buyer seller is selling at a specified bid price. Basically, a buyer is willing to buy a certain amount of shares, the price does not matter, only the number of shares the buyer is willing to purchase.
BLOCK TRADE
A trade so large that the normal auction market cannot absorb it in a reasonable time at a reasonable price. In general, 10,000 shares of stock or $200,000 worth of bonds would be considered a block trade.
BLUE CHIP STOCK
The equity issues of financially stable, well-established companies that have demonstrated their ability to pay dividends in both good and bad times.
BOLLINGER BANDS
Bollinger Bands were invented by John Bollinger and they consist of a set of three curves drawn in relation to securities prices. The middle band is a measure of the intermediate-term trend, usually a simple moving average, that serves as the base for the upper and lower bands. The purpose of Bollinger Bands is to provide a relative definition of a dynamic, ever changing high and low range within that moving average. By definition prices are high at the upper band and low at the lower band.
Book Value in U.S. Dollars, also referred to as Common Equity, is the Total Equity as of the fiscal period end minus Preferred Stock and Redeemable Preferred Stock.
The Book Value Per Share is defined as the Book Value in U.S. Dollars divided by the Shares Outstanding as of the end of that period.
BOOK VALUE PER SHARE, 5 YEAR GROWTH RATE
The Book Value Per Share Growth Rate is the annual compounded growth rate of Book Value Per Share over the last 5 years.
Note: If the value for either the most recent year or the oldest year is zero or negative, that year is ignored. If a 5 year growth rate cannot be calculated, a 4 year growth rate is used instead. If a 4 year growth rate cannot be calculated, a 'NA' (Not Available) code will be used.
BOOK VALUE PER SHARE GROWTH RATE, NUMBER OF YEARS
This is the number of years over which the Book Value Per Share Growth Rate is calculated.
BOOK VALUE (TANGIBLE) IN U.S. DOLLARS
The Tangible Book Value in U.S. Dollars is the Book Value in U.S. Dollars minus Goodwill and Intangible Assets.
BOOK VALUE (TANGIBLE) PER SHARE
The Tangible Book Value Per Share is the Tangible Book Value in U.S. Dollars divided by the Shares Outstanding at the end of that fiscal period.
BREADTH
This is one of those technical terms you might hear mentioned in a trading room. It simply demonstrates how broadly a market is moving. When three-quarters of the stocks on the New York Stock Exchange, for example, rise during a given day, an observer might say the stock market had good breadth. Often, observers will measure the number of stocks advancing against the number declining as one way of monitoring breadth.
The symbol can break even below the price.
The symbol can break even above the price.
BREAKEVEN POINT
(1) The point at which gains equal losses. (2) The market price that a stock must reach for an option buyer to avoid a loss if he - exercises. For a call, it is the strike price plus the premium paid. For a put, it is the strike price minus the premium paid.
BREAKOUT
A rise in a security's price above a resistance level (commonly its previous high price) or drop below a level of support (commonly the former lowest price.) A breakout is taken to signify a continuing move in the same direction. Can be used by technical analysts as a buy or sell indication.
BRIEF
The Brief is a condensed text description contained in up to eight lines of 60 characters each. It describes the company's activities, its year-to-date performance compared to the same period a year ago, and the reasons why the performance is up or down.
BULL
An investor who thinks the market will rise.
BULL MARKET
A market which is on a consistent upward trend.
BUYOUT
Purchase of a controlling interest (or percent of shares) of a company's stock. A leveraged buyout is done with borrowed money.
CTOP
An option contract that gives the holder of the option the right (but not the obligation) to purchase, and obligates the writer to sell, a specified number of shares of the underlying stock at the given strike price, on or before the expiration date of the contract. Opposite of a PUT.
CANDLESTICK CHARTING
Method of drawing stock (or commodity) charts which originated in Japan. Requires the presence of Open, High, Low and Close price data to be drawn. There are two basic types of candles, the white body and the black body. As with regular bar charts, a vertical line is used to indicate the periods (normally daily) high to low. When prices close higher than they opened a white rectangle is drawn on top of the high-low line. This rectangle originates at the opening price level and extends up towards the closing price. A down day is drawn in black. The combination of several candles results in patterns (with names like "two crows" or "bullish engulfing pattern") which give insight into future price activity. For other Japanese charting approaches also see Renko and Kagi charts.
CAPITAL GAIN
When a stock is sold for a profit, it's the difference between the net sales price of securities and their net cost, or original basis. If a stock is sold below cost, the difference is a capital loss.
CAPITAL LOSS
The difference between the net cost of a security and the net sale price, if that security is sold at a loss.
CAPITAL SPENDING, 5 YEAR GROWTH RATE
The Capital Spending 5 Year Growth Rate is the annual compounded growth rate of Capital Spending over the last 5 years. Capital Spending is the sum of the Capital Expenditures items from the Statement of Cash Flows.
Note: If the value for either the most recent year or the oldest year is zero or negative, that year is ignored. If a 5 year growth rate cannot be calculated, a 4 year growth rate is used instead. If a 4 year growth rate cannot be calculated, a 'NA' (Not Available) code will be used.
CASH ACCOUNT
An account in which the customer is required by the SEC's Regulation T to pay in full for securities purchased not later than two days after the standard payment period set by the NASD's Uniform Practice Code.
A dividend paid in cash to a company's shareholders. The amount is normally based on profitability and is taxable as income. A cash distribution may include capital gains and return of capital in addition to the dividend.
CASH FLOW PER SHARE, TTM ($ per share)
This value is the trailing twelve month Cash Flow divided by the trailing twelve months Average Shares Outstanding. Cash Flow is defined as the sum of Income After Taxes minus Preferred Dividends and General Partner Distributions plus Depreciation, Depletion and Amortization.
The Cash Flow 5 Year Growth Rate is the annual compounded growth rate of Cash Flow over the last 5 years. Cash Flow is the sum of Income After Taxes minus Preferred Dividends and General Partner Distributions plus Depreciation, Depletion and Amortization.
Note: If the value for either the most recent year or the oldest year is zero or negative, that year is ignored. If a 5 year growth rate cannot be calculated, a 4 year growth rate is used instead. If a 4 year growth rate cannot be calculated, a 'NA' (Not Available) code will be used.
The individual financing activities cash flow line items.
Total Cash from Financing Activities is the sum of the individual financing activity cash flow line items.
The individual investing activities cash flow line items.
Total Cash from Investing Activities is the sum of the individual investing activity cash flow line items.
The individual operating activities cash flow line items.
Total Cash from Operating Activities is the sum of the individual operating activity cash flow line items.
Net Change in Cash is the difference between the beginning and ending cash as reported on the balance sheet.
Note: It can also be calculated by adding cash from operating, investing, and financing activities and foreign exchange effects from the Statement of Cash Flows.
CASH PER SHARE
Cash Per Share is the Total Cash plus Short Term Investments divided by the Shares Outstanding at the end of the fiscal period.
CASH, TOTAL (Preliminary)
The Preliminary Total Cash is the Total Cash figure provided by the company in their earnings announcement.
Note: This value is not always provided by the Company in their preliminary earnings announcements.
This is the difference between the current price and the close from the previous day. If a stock closed at $25.00 yesterday and today is trading at $26.22 then the change would be +$1.22.
CHART
This is where price action of the underlying symbol can be displayed and Technical Analysis added. Symbols can be viewed in Bar, Candle Stick, or Line form.
CHART OF ACCOUNTS TYPE CODE
Market Guide's "As Reported line item descriptions" are mapped to one of four "industry specific" chart of accounts. The Industry Type Code indicates the chart of accounts to which this company's line items are mapped.
CHOPPINESS
This study measures the direction of the market. If the choppiness is low then the market is in a trend. If the choppiness is high then the market is not trending, more likely in a sideways market.
CITY
This is the city where the company's headquarters are located. The city is verified quarterly from the most recent 10-K or 10-Q.
(1) The price of the last transaction for a particular security on a particular day. (2) The mid-price of a closing trading range.
COMMISSION
The fee paid to a broker to execute a trade, based on number of shares, bonds, options and/or their dollar value. In 1975, deregulation led to the creation of discount brokers, who charge lower commissions than full service brokers. Full service brokers offer advice and usually have a full staff of analysts who follow specific industries. Discount brokers simply execute a client's order, they usually do not offer an opinion on a stock.
COMMON STOCK
Value of outstanding common shares at par, plus accumulated retained earnings. Also called shareholders' equity.
COMPANY AVERAGE RATING (MG's Average Senior Debt Rating)
This is an average senior debt rating from the current ratings of Fitch Investor Service, L.P., Moody's Investors Service, and Standard & Poor's Rating Group.
The company name. Generally, this is the name of the company as specified in the company's charter. However, some companies are better recognized and accessed in the Market Guide database by using their popular names or acronyms, such as AT&T.
COMPANY, NEW
A flag indicating that the company has been added to the database in the latest week. A value of one (1) indicates that this is a new company addition to the database. A value of zero (0) means that this company has previously been included in the database.
COMPANY STATUS
The Company Status indicates whether the company's common stock is still traded. Companies that have been acquired, taken private or are no longer in business, are kept in the database for reference purposes, and are flagged as inactive.
CONFIRMATION
The written statement that follows any "trade" in the securities markets. Confirmation is issued immediately after a trade is executed. It spells out settlement date, terms, commission, etc.
CONSOLIDATION
An area of price congestion in which a stock will trade sideways within a narrow price range for some period of time. Often occurs before a continuation of the prior trend. Also known as a shelf or line.
CONTACT NAME AND TITLE
The first name (CONTACTFNM), last name (CONTACTLNM) and title (CONTACTTITL) of the person designated by the company as its investor relations or investor contact person. (Some companies, especially the larger ones specify a title only, e.g. Director of Investor Relations. For these companies, the first and last name will be blank.)
CONTINUOUS IMPLIED VOLATILITY CALL/PUTS
Volatility measures the fluctuation in the market price of the underlying security. Mathematically, volatility is the annualized standard deviation of returns. Implied volatility measures whether option premiums are relatively expensive or inexpensive. Implied volatility is calculated based on the currently traded option premiums. A mathematical formula, using stock price, strike price, time to maturity, interest rate and historical volatility, is used to arrive at the implied volatility number.
CONVERGENCE
The movement of the price of a futures contract toward the price of the underlying cash commodity. At the start, the contract price is higher because of the time value. But as the contract nears expiration, the futures price and the cash price converge.
This column shows the how much it would cost for the selected option symbol in the Spread Select window.
COVERED CALL
A short call option position in which the writer owns the number of shares of the underlying stock represented by the option contracts. Covered calls generally limit the risk the writer takes because the stock does not have to be bought at the market price, if the holder of that option decides to exercise it.
COVERED PUT
A put option position in which the option writer also is short the corresponding stock or has deposited, in a cash account, cash or cash equivalents equal to the exercise of the option. This limits the option writer's risk because money or stock is already set aside. In the event that the holder of the put option decides to exercise the option, the writer's risk is more limited than it would be on an uncovered or naked put option.
This will display the cross hairs for the selected chart. The cross hairs will display the Date and Price on the X and Y axis for the chart.
CROSSOVER
When the faster indicator crosses above (bullish crossover) or below (bearish crossover) the slower indicator.
COST OF GOODS SOLD
The Costs of Goods Sold, also called the Cost of Revenue, is the cost of all raw materials plus the work in process and the cost of producing the finished goods.
Note: This item is not meaningful (NM) for Banks and Insurance companies.
COUNTRY
The name of the country where the company has its corporate headquarters.
COUNTRY CODE
The code used to identify the country in which the company's corporate headquarters is located.
CURRENCY
The currency that the financial statements are reported in.
The code used to identify the currency that the financial statements are reported in.
CURRENCY EXCHANGE RATE, CURRENT
The most recent Currency Exchange Rate reported as the number of foreign currency units per U.S. Dollar. The currency rate is as of Thursday of the prior week as reported in The Wall Street Journal on Friday.
CURRENCY EXCHANGE RATE, FISCAL YEAR AVERAGE
The Average Exchange Rate for the most recent fiscal year, in foreign currency units per U.S. Dollar.
CURRENCY EXCHANGE RATE, FISCAL YEAR END
Currency Exchange Rate as of the last day of the most recent fiscal year, in foreign currency units per U.S. Dollar.
The Current Ratio is Total Current Assets divided by Total Current Liabilities. This item is not available for Banks, Insurance companies and other companies that do not differentiate between current and long term assets and liabilities.
CUSIP
The CUSIP number for the company and issue being tracked by Market Guide. When a company has multiple classes of common stock, the CUSIP indicates which issue is being priced and being tracked for dividend information. All pricing and dividend information is for this issue only.
DTOP
This is a 1 character field which identifies whether the data on the file is from the annual (A) or quarterly (Q) financial statements.
The data window displays the Date based off of the location of the Pointer, Open (O), High (H), Low (L), Close (C) for where the pointer is positioned or the current data. As well the Data Window will display any Study values that are added to that Chart.
The Filing Date is the date that the source documents were filed with the Security Exchange Commission.
The Fiscal Period Ending Date is the date of the last day of the period. It is the date found on the financial statements as reported by the subject company.
DATE, FISCAL PERIOD END, MOST RECENT
The Most Recent Fiscal Period Ending Date is the date of the last day of the most recent period. It is the date found on the financial statements as reported by the Subject Company.
DATE, "FLASH" OR "CURRENT PERIOD" END
The Ending Date of the "Current" or Most Recent fiscal period available on this company. This is the latter of the ending date of the most recent quarterly data, or the date of the quarter for which an earnings announcement (press release) has been made.
The Pricing Date is the date at which the issue was last priced. NYSE, AMEX & NASDAQ companies are priced every day as of the close or last bid. For those Pink sheet companies whose pricing information can not be obtained on a daily basis, Market Guide updates the price at least once per quarter when the financials are updated. The date is expressed as YYYYMMDD or 19940926.
DATE, RESTATEMENT -- BALANCE SHEET
If a financial statement is restated, the restated information replaces the information originally reported for that period. The Balance Sheet Restatement Date is the ending date of the fiscal period in which this restated information was released. Because there are various SEC mandated historical reporting requirements for each type of financial statement, we have a separate restatement date for each financial statement.
DATE, RESTATEMENT -- INCOME STATEMENT
If a financial statement is restated, the restated information replaces the information originally reported for that period. The Income Statement Restatement Date is the ending date of the fiscal period in which this restated information was released. Because there are various SEC mandated historical reporting requirements for each type of financial statement, we have a separate restatement date for each financial statement.
DATE, RESTATEMENT -- STATEMENT OF CASH FLOWS
If a financial statement is restated, the restated information replaces the information originally reported for that period. The Statement of Cash Flows Restatement Date is the ending date of the fiscal period in which this restated information was released. Because there are various SEC mandated historical reporting requirements for each type of financial statement, we have a separate restatement date for each financial statement.
DATE, UPDATE
The update date is the date the information for the subject company was last updated by a Market Guide analyst. Other information such as prices, volume, dividend rates, insider and institutional holdings, exchange rates, etc. are updated more frequently. The frequency of these updates is not reflected in the Update Date. The format for the update is YYYYMMDD or 19940902.
DAY ORDER
An order to buy or sell stock that automatically expires if it can't be executed on the day it is entered.
This is a measure of a company's financial leverage. It compares assets provided by creditors to assets provided by shareholders. It is calculated by dividing its total liabilities (long-term debt) by stockholders' equity. It indicates what proportion of debt and equity the company is using to finance its assets.
Long Term Debt is debt due after one year such as Long Term Notes Payable, Debentures, and Long Term Debt. Each of these items may represent various types of Long Term Debt or Capitalized Lease Obligations.
The Long Term Debt Per Share is the Total Long Term Debt divided by the Shares Outstanding at the end of the fiscal period.
The Total Long Term Debt is the sum of all Long Term Debt and Capitalized Lease Obligations.
DEBT (Long Term) TO ASSETS RATIO
The Long Term Debt to Assets Ratio is the Total Long Term Debt divided by the Total Assets.
DEBT (Long Term) TO TOTAL CAPITAL RATIO
The Long Term Debt to Total Capital Ratio is the Total Long Term Debt divided by Total Capital.
DEBT (Long Term) TO TOTAL EQUITY RATIO
The Long Term Debt to Total Equity Ratio is the Total Long Term Debt divided by Total Equity as of the latest fiscal period.
Total Debt equals Short Term Debt + the current portion of Long Term Debt and Capitalized Lease Obligations + Long Term Debt + Capitalized Lease Obligations.
The Preliminary Total Debt is the debt figure provided by the company in their earnings announcement.
Note: This value is not always provided by the Company in their preliminary earnings announcements.
DEBT (Total) TO TOTAL ASSETS RATIO
The Total Debt to Total Assets Ratio is Total Debt (Long and Short Term) including Capitalized Lease Obligations divided by Total Assets.
DEBT (Total) TO TOTAL CAPITAL RATIO
The Total Debt to Total Capital Ratio is Total Debt divided by Total Capital.
DEBT (Total) TO TOTAL EQUITY RATIO
The Total Debt to Total Equity Ratio is Total Debt divided by Total Equity.
Note: This ratio is not meaningful for banks.
DECREASE SPACING
Decrease Spacing will decrease the spacing between the displayed bars on the chart. This will also decrease the spacing of the time scale shown at the bottom of the chart.
Delta measures how much an option price will move relative to the underlying asset. It is the percentage change in the option premium for each dollar change in the underlying option.
Some call it the 'hedge ratio.' For example, say you have a call option with a delta of 0.8, it means for every $1 the stock increases the call option will increase by 80 cents.
Call options said to be 'in the money' as it nears expiration, it will approach a delta of 1.00. When a Call option that is in-the-money put option nears expiration, it will approach a delta of -1.00.
Say a stock has a strike price of $20 and its price goes up $2. This will cause the Call option premium to rise by a certain percentage. Say the price rises $1. The Call option is said to have a positive delta of 50% because the premium increased $1 for a $2 stock price increase. The Put option on the other hand is said to have a negative delta because the Put option should decrease the same amount.
Options are many times used to hedge a position or risk. This is known as hedging risk. If, for instance, you own a 100 shares of a stock priced at $50 and you expect the price to go up after earnings. Once it goes up you may want to lock in your profits. What happens if your stock comes in under estimates? To protect your position how many Puts should you buy to hedge your position? If the delta of the put is -$.50, then the put will increase in value by 50¢ for each $1 drop in the price of the stock, at least while it hovers around the strike price. Therefore, you would want to buy 2 put contracts to cover or hedge your position. If the value of the portfolio doesn’t change within a narrow range, it is said to be delta neutral. The delta of a portfolio is sometimes called its position delta.
DEPOSITORY TRUST CORPORATION (DTC)
The Depository Trust Company (DTC) is the world's largest securities depository with more than $10 trillion worth of securities in custody. In 1995, DTC processed $41 trillion of securities through its book-entry settlement system. DTC is a national clearing house for the settlement of trade in corporate and municipal securities and performs securities custody-related services for its participating banks and broker-dealers. DTC is owned by members of the financial industry and by their representatives who are its users. DTC is 35.1% owned by the New York Stock Exchange on behalf of the Exchange's members. It is operated by a separate management and has an independent board of directors. It is a limited purpose trust company and is a member of the Federal Reserve.
DEPRECIATION EXPENSE, STATEMENT OF CASH FLOWS
Depreciation Expense, Statement of Cash Flows is the sum of Depreciation plus Amortization expenses. Since these values are not always specified on the Income Statements, these values are taken from the Statement of Cash Flows.
DILUTION ADJUSTMENT
The Dilution Adjustment is the after-tax adjustment to earnings used in calculating diluted earnings per share. It generally reflects the after-tax effect of income earned/expense avoided should all dilutive securities be converted to common stock.
Distribution of a portion of a company's earnings, cash flow or capital to shareholders, in cash or additional stock.
Distribution of a portion of a company's earnings, cash flow or capital to shareholders, in cash or additional stock on an annual basis.
Cash Dividends Paid is reported in the Statement of Cash Flows. This is the total dividends paid on common and preferred stock.
DIVIDEND DECLARED, LAST QUARTERLY
The Last Quarterly Dividend Declared is the amount of the last quarterly dividend, if one has been declared by the company.
DIVIDEND EX-DATE, LAST QUARTERLY
The Ex-Dividend Date is the first date on which a person purchasing the stock is no longer eligible to receive the last announced dividend. If a prospective dividend payment has been announced, this may be a future date.
The Dividend Growth Rate is the compound annual growth rate in dividends per share. DIVGR% is calculated for 3 years whenever 4 years of dividends are available. If the value for either the most recent year or the oldest year is zero or negative, that year is ignored. If the required 4 years are not available for any given company, the result is a NM (Not Meaningful) or a NA (Not Available) depending on the condition. If the 5 Year Dividend Growth Rate (DIVTRENDGR) can not be calculated, a 4 year growth rate is used instead.
DIVIDEND GROWTH RATE, NUMBER OF YEARS
This is the number of years over which the Dividend Growth Rate (DIVGR%) is calculated.
DIVIDEND PAYMENT-DATE, LAST QUARTERLY
The Last Quarterly Dividend Payment-date is the date on which the dividend payment for the last dividend declared will be made to the shareholders.
The Dividends Per Share are the common cash dividends per share for each fiscal period.
DIVIDENDS PER SHARE, TTM ($ per share)
This is the sum of the Cash Dividends per share paid to common stockholders during the last four fiscal quarters.
DIVIDEND PERCENT CHANGE, YEAR TO YEAR
The Year To Year Dividend Percent Change is the percent change in the most recent fiscal year Dividends Per Share as compared to the same period one year ago.
DIVIDEND RATE, INDICATED ANNUAL
The Indicated Annual Dividend Rate is the total of the expected dividend payments over the next twelve months. It is generally the most recent cash dividend paid or declared multiplied by the dividend payment frequency, plus any recurring extra dividends.
DOJI
A Doji is a candlestick bar as used in Japanese Candlestick Charting in which the open and close prices are the same. It is a reversal pattern that, used along with other indicators, can point towards a change in the direction of the current trend.
The dividend yield is a percentage calculated by dividing the indicated annual dividend by the current price. This can be used to screen for stocks with a dividend yield above or below a certain number. It can also be used to screen for companies that do not pay a dividend by searching for stocks with no dividend yield.
DOUBLE BOTTOM
Price action that resembles the letter W in which price declines stop twice at, or near, the same lows.
DOUBLE TOP
Price action that resembles the letter M in which price rallies stop twice at, or near, the same highs.
DOW JONES AVERAGE
The most widely quoted and oldest measures of change in stock prices. Each of the four averages is based on the prices of a limited number of stocks in a particular category.
DOWNGRADE
A classic negative change in ratings for a stock, and or other rated security.
DRAG AND DROP
The Quote Sheet offers the ability to drag and drop symbols from one line to the next and from the Quote Sheet to a Chart. To drag a symbol from the Quote Sheet to another line within the Quote Sheet, another Quote Sheet or any chart just click with the left mouse button and hold it down while moving your cursor to the desired location for the symbol to be moved. When you are at the desired location release the left mouse button and the drag and drop will be complete.
DUE DILIGENCE
The careful investigation by the underwriters that is necessary to ensure that all material information pertinent to an issue has been disclosed to prospective investors.
ETOP
EARNINGS
Net income for the company during the period.
Earnings Comparison is a technique or approach used by corporations and government entities to better determine if earnings are trending, increasing or decreasing from one period to another in a consistent pattern. This information can be used in many different ways. Earnings comparison information can be used internally, within an industry, or by government entities for policy formation or administrative application.
Also referred to as Primary Earnings Per Share. Net income for the past 12 months divided by the number of common shares outstanding, as reported by a company. The company often uses a weighted average of shares outstanding over reporting term.
The actual Earnings Per Share (EPS) reported from continuing operations for the current fiscal quarter.
The consensus Earnings Per Share (EPS) estimate for the next fiscal quarter.
The consensus Earnings Per Share (EPS) estimate for the next fiscal year.
The consensus Earnings Per Share (EPS) estimate for the most recently completed fiscal year.
EQUITY
The value of the common stockholders' equity in a company as listed on the balance sheet. (2) In a margin or short account, equity equals what is owned minus what is owed.
ESTIMATE NET SPREAD VOLATILITY
This Volatility number estimates the current spread volatility for the specific spread/symbol. It updates with the market and will update the Risk Graph when it is clicked on.
The marketplace in which shares, options and futures on stocks, bonds, commodities and indices are traded. Principal US stock exchanges are: New York Stock Exchange (NYSE), American Stock Exchange (AMEX) and the National Association of Securities Dealers (NASDAQ).
EXECUTION
The process of completing an order to buy or sell securities. Once a trade is executed, it is reported by a Confirmation Report; settlement (payment and transfer of ownership) occurs in the U.S. between 1 (mutual funds) and 5 (stocks) days after an order is executed. Settlement times for exchange listed stocks are in the process of being reduced to three days in the U.S.
EXPONENTIAL MOVING AVERAGE
Applies a percentage of today's closing price to yesterday's moving average calculation thus giving more importance to the most recent days unlike the simple moving average which considers each day equally.
The last day (in the case of American-style) or the only day (in the case of European- style) on which an option may be exercised. For stock options, this date is the Saturday immediately following the 3d Friday of the expiration month; however, brokerage firms may set an earlier deadline for notification of an option holder's intention to exercise. If Friday is a holiday, the last trading day will be the preceding Thursday.
EXTENDED LINE
An Extended Line is a straight line that connects two or more price points and then extends indefinitely into the future or past to act as a line of support or resistance.
FTOP
FIBONACCI EXTENSION
Fibonacci Extension is a technical analysis tool designed to identify or predict price movements and market momentum. It can be used as a basis for determining price projections along with support and resistance levels. Fibonacci Extension numbers can be used as targets for taking profits, or for identifying potential price levels where the next big major moves may be able to transition.
FIBONACCI RATIOS
They can be applied both to price and time, although it is more common to use them on prices. The most common levels used in retracement analysis are 61.8%, 38% and 50%. When a move starts to reverse the 3 price levels are calculated (and drawn using horizontal lines) using a movements low to high. These retracement levels are then interpreted as likely levels where counter moves will stop. It is interesting to note that the Fibonacci ratios were also known to Greek and Egyptian mathematicians. The ratio was known as the Golden Mean and was applied in music and architecture. A Fibonacci spiral is a logarithmic spiral that tracks natural growth patterns.
FIBONACCI RETRACEMENT
Fibonacci Retracements is a tool designed to identify support or resistance, buy or sell levels once a pullback occurs within a trend or swing move. Retracements are temporary price reversals that take place within a larger trend. The key here is that these price reversals are temporary, and do not indicate a change in the larger trend. Support and resistance levels provide key stop-loss levels for money management purposes.
FLOAT
The number of shares of a security that are outstanding and available to the trading public.
Using the float option on the Chart, Option Chain, Quote Sheet, Risk Graph, Spread Select, and/or Trade Seeker enables the ability to take a window out of the main program window. It then can be moved and resized anywhere on the screen. When the Page is saved the window(s) that are outside of the main program will be saved in those locations as well.
FORMAT
By right clicking on the Chart and selecting format there will be multiple options available to manipulate the chart formatting.
FUNDAMENTAL ANALYSIS
A method of evaluating securities by attempting to measure the intrinsic value of a particular stock. Fundamental analysts study the overall economy, industry conditions and the financial condition and management of particular companies.
GTOP
Basically the Gamma is the rate of change for delta as it relates to the stock price. Gamma is used to gauge how far an option price is compared to the degree it is in or out of the money.
If the option is deep in or out of the money it typically has a small Gamma. When the option is near or at the money the Gamma is at its largest value. As an option goes more into the money, delta will increase until it tracks the underlying dollar for dollar; however, delta can never be greater than 1, or, in the case of a put, less than -1. When delta is close to 1 or -1, then gamma is near zero, because delta doesn’t change much with the price of the underlying stock.
Gamma and delta are greatest when an option is at the money—when the strike price is equal to the price of the underlying. The change in delta is greatest for options at the money, and decreases as the option goes more into the money or out of the money. Both gamma and delta tend to zero as the option moves further out of the money. The total gamma of a portfolio is called the position gamma.
GOOD 'TIL CANCELED
Sometimes simply called "GTC", it means an order to buy or sell stock that is good until you cancel it. Brokerages usually set a limit of 30-60 days, at which the GTC expires if not restated.
Groups are an orderly collection of similar businesses.
GROWTH RATES
The Growth rate is expressed as a percentage of the Year over Year change in revenue growth.
HTOP
HEAD & SHOULDERS
In technical analysis, a chart formation in which a stock price reaches a peak and declines, rises above its former peak and again declines and rises again but not to the second peak and then again declines. The first and third peaks are shoulders, while the second peak is the formation's head. Technical analysts generally consider a head and shoulders formation to be a very bearish indication.
HEDGING
A strategy designed to reduce investment risk using "call" options, "put" options, "short" selling, or futures contracts. A hedge can help lock in existing profits. Its purpose is to reduce the potential volatility of a portfolio, by reducing the risk of loss.
HOME
Chart Home will snap the chart to the right side of the screen in order to see the last bar. Any formatting that has been applied to the chart will not be lost. The chart will just be moved to the default offset.
HIGH PRICE
The highest (intra-day) price of a stock over the past 52 weeks, adjusted for any stock splits.
Home
Chart Home will snap the chart to the right side of the screen in order to see the last bar. Any formatting that has been applied to the chart will not be lost. The chart will just be moved to the default offset.
ITOP
IMPORT SYMBOLS
To import a text list of symbols to the Quote Sheet right click on the quote sheet and select Import Symbols... then locate your list of symbols to import and open the file.
Implied volatility measures whether option premiums are relatively expensive or inexpensive. Implied volatility is calculated based on the currently traded option premiums. A mathematical formula, using stock price, strike price, time to maturity, interest rate and historical volatility, is used to arrive at the implied volatility number.
INCREASE SPACING
Increase Spacing will increase the spacing between the displayed bars on the chart. This will also increase the spacing of the time scale at the bottom of the chart.
INDIVIDUAL RETIREMENT ACCOUNT (IRA)
A retirement investing tool for employed individuals that allows an annual contribution of 100% of earned income up to a maximum of $2,000. Some or all of the contribution may be deductible from current taxes, depending on the individual's adjusted gross income and coverage by employer-sponsored qualified retirement plans.
An industry is the category describing a company's primary business activity. The largest portion of revenue usually determines this category. To screen for companies in a particular industry, select the industry from the drop down menu.
A company's first sale of stock to the public. Securities offered in an IPO are often, but not always, those of young, small companies seeking outside equity capital and a public market for their stock. Investors purchasing stock in IPOs generally must be prepared to accept very large risks for the possibility of large gains. IPO's by investment companies (closed end funds) usually contain underwriting fees which represent a load to buyers.
INSIDER INFORMATION
Relevant information about a company that has not yet been made public. It is illegal for holders of this information to make trades based on it, however received.
A "call" option is in-the-money if the strike price is less than the market price of the underlying security. A "put" option is in-the-money if the strike price is greater than the market price of the underlying security. For example, a xyz "call" option with a 52 strike price is in-the-money when xyz trades at 52 1/8 or higher. A xyz "put" option with a 52 strike price is in-the-money when xyz is trading at 51 7/8 or lower.
The actual value of a company or an asset based on an underlying perception of its true value including all aspects of the business. This value may or may not be the same as the current market value. Value investors use a variety of analytical techniques in order to estimate the intrinsic value of securities in hopes of finding investments where the true value of the investment exceeds its current market value.
For call options, it is the difference between the underlying stock's price and the strike price.
For put options, it is the difference between the strike price and the underlying stock's price.
In the case of both puts and calls, if the respective difference value is negative, the intrinsic value is zero.
Intrinsic value in options is the in-the-money portion of the option's premium. For example, If a call options strike price is $40 and the underlying stock's market price is at $50, then the intrinsic value of the call option is $10. An option is usually never worth less than what an option holder can receive if the option is exercised.
The total value of an option is the sum of its intrinsic value and its time value.
LTOP
LAGGING INDICATOR
A measurable economic factor that changes after the economy has started to follow a particular pattern or trend. Lagging indicators are believed to confirm long-term trends. Examples include average duration of unemployment, corporate profits and labor cost per unit of output.
(1) The price of the last transaction for a particular security on a particular day. (2) The mid-price of a closing trading range.
LEADING INDICATOR
A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators are believed to predict changes in the economy. Examples include new orders for durable goods, slowdowns in deliveries by vendors and numbers of building permits issued.
LIMIT ORDER
An order to buy a stock at or below a specified price or to sell a stock at or above a specified price. For instance, you could tell a broker "Buy me 100 shares of xyz Corp at $8 or less" or to "sell 100 shares of xyz at $10 or better."
LINE CHART
A style of chart that is created by connecting a series of closing prices, from given time frames, together with a line. This is the most basic type of chart used and it is generally created by connecting a series of past prices together with a line.
LISTED STOCK
The stock of a company that is traded on a securities exchange. The various stock exchanges have different standards for listing. Some of the guides used by the New York Stock Exchange for an original listing are national interest in the company and a minimum of 1.1 million shares publicly held among not less than 2,000 round-lot stockholders. The publicly held common shares should have a minimum aggregate market value of $18 million. The company should have net income in the latest year of over $2.5 million before federal income tax and $2 million in each of the preceding two years.
An alternate type of scale used on a chart that is plotted in such a way that two equivalent percent changes are represented by the same vertical distance on the scale, regardless of what the price of the asset is when the change occurs. The distance between the numbers on the scale decreases as the price of the underlying asset increases. This is the case because a $1 increase in price becomes less influential as the price heads higher since it now corresponds to less of a percentage change than it did when the price of the asset was at a lower level. Also referred to as a "log scale or LG".
The purchase of a borrowed security, commodity or currency with the expectation that the asset will rise in value. This occurs when an individual purchases and then owns securities. An owner of 1000 shares of stock is said to be "Long the Stock."
The lowest (intra-day) price of a stock over a certain period of time.
MTOP
MACD (Moving Average Convergence/Divergence)
The MACD is used to determine overbought or oversold conditions in the market. Written for stocks and stock indices, MACD can be used for commodities as well. The MACD line is the difference between the long and short exponential moving averages of the chosen item. The signal line is an exponential moving average of the MACD line. Signals are generated by the relationship of the two lines. As with RSI and Stochastics, divergences between the MACD and prices may indicate an upcoming trend reversal.
MAKE A MARKET
To stand ready to buy or sell a particular security as a dealer for its own account. A market maker accepts the risk of holding the position in the security.
MARK-TO-MARKET
The daily adjustment of margin accounts to reflect profits and losses.
MARGIN ACCOUNT
A leverage able account in which stocks can be purchased for a combination of cash and a loan. The loan in the margin account is collateralized by the stock and, if the value of the stock drops sufficiently, the owner will be asked to either put in more cash, or sell a portion of the stock. Margin rules are federally regulated, but margin requirements and interest may vary among broker/dealers.
MARKET ORDER
An order to buy or sell a stock at the going price.
MARGIN CALL
The Federal Reserve Board's demand that a customer deposit a specified amount of money or securities when a purchase is made in a margin account; the amount is expressed as a percentage of the market value of the securities at the time of purchase. The deposit must be made within one payment period.
This column in the Option Chain shows the maximum profits available for the selected option symbol.
This column in the Option Chain shows the maximum risk associated with the selected option symbol.
Momentum provides an analysis of changes in prices (as opposed to changes in price levels). Changes in the rate of ascent or descent are plotted. The Momentum line is graphed positive or negative to a straight line representing time. The position of the time- line is determined by price at the beginning of the Momentum period. Traders use this analysis to determine overbought and oversold conditions. When a maximum positive point is reached, the market is said to be overbought and a downward reaction is imminent. When a maximum negative point is reached, the market is said to be oversold and an upward reaction is indicated.
MONEY FLOW
This indicator is a measure of the strength or a summation of average money flow into and out of an equity. Is heavier trading occurring on days when price is trending up, down or sideways.
Money flow is considered positive on days where there is an increase in average price and negative on days when average price declines. The daily average price is calculated by averaging the high, low and closing prices. Money flow (MF) is computed by multiplying the volume for the day by this average price. On days that average price is higher, the positive rolling summation is increased by the money flow amount (MF) and on days where the average price has declined, the MF is added to the negative rolling summation. A money flow ratio is calculated over a period of time between the up and down summations and normalized within a range between 0 and 100 where 100 indicates extreme positive money flow and 0 indicates extreme negative money flow.
Market tops are many times accompanied by higher volume and can be seen on the charts when money flow goes above 80. Bottoms occur when the indicator drops below 20 on the chart.
MONEY MARKET FUND
A mutual fund that invests only in short term securities, such as bankers' acceptances, commercial paper, repurchase agreements and government bills. The net asset value per share is maintained at $1.00. Such funds are not federally insured, although the portfolio may consist of guaranteed securities and/or the fund may have private insurance protection.
The day on which an options or futures contract is no longer valid and, therefore, ceases to exist. The expiration date for all listed stock options in the U.S. is the third Friday of the expiration month (except when it falls on a holiday, in which case it is on Thursday).
MOVING AVERAGES
The moving average is probably the best known, and most versatile, indicator in the analysts tool chest. It can be used with the price of your choice (highs, closes or whatever) and can also be applied to other indicators, helping to smooth out volatility. As the name implies, the Moving Average is the average of a given amount of data. For example, a 14 day average of closing prices is calculated by adding the last 14 closes and dividing by 14. The result is noted on a chart. The next day the same calculations are performed with the new result being connected (using a solid or dotted line) to yesterdays. And so forth. Variations of the basic Moving Average are the Weighted and Exponential moving averages.
NTOP
Sometimes called an uncovered option, a naked option is one whose seller does not maintain an equivalent position in the underlying security. For example, the owner of a call has the option to buy the underlying stock from the writer of the call. However, if the writer does not own that stock the option is naked. When the holder decides to exercise his option, the writer will be forced to buy the stock on the open market, and then resell it at the lower strike price. This will result in a loss for the writer. For obvious reasons, writing naked options is risky and must be done in a margin account.
NAME, COMPANY
The company name. Generally, this is the name of the company as specified in the company's charter. However, some companies are better recognized and accessed in the Market Guide database by using their popular names or acronyms, such as AT&T.
NASDAQ
The National Association of Securities Dealers Automated Quotation is a global intranet providing brokers and dealers with price quotations on traded over-the-counter. Unlike the NYSE auction market where orders meet on a trading floor, NASDAQ orders are paired and executed on a computer network. Level I service provides the best bid and offer (BBO) in a given security without identifying the market maker. Level II service provides the BBO and identifies the market maker. Level III service allows registered market makers to compete and trade by entering their own bids and offers.
NASD
The National Association of Securities Dealers is an industry association of broker/dealers in the over-the-counter securities business. The NASD is self-regulatory body and administers the NASDAQ stock market.
NATIONAL MARKET SYSTEM
A national market system was mandated by the Securities Act Amendments of 1975, the most important federal securities legislation since the 1930s. At the heart of the national market is the ITS), which began operation in 1978. Nine markets -- the American, Boston, Cincinnati, Chicago, New York, Pacific, and Philadelphia and NASD over-the-counter market -- are linked electronically by ITS computers. This allows traders at any exchange to seek the best available price on all other exchanges that a particular security is eligible to trade on. The national market system also includes a consolidated electronic tape, which combines last-sale prices from all markets into a single stream of information.
An option is that is Near-The-Money means that the strike price of the option is close to the market price of the underlying security. For example, if a stock is trading at 75, then the 74 or 76 underlying security is Near-The-Money.
NOISE
Price and volume fluctuations that can confuse interpretation of market direction.
NEW YORK STOCK EXCHANGE (NYSE)
The NYSE marketplace blends public pricing with assigned dealer responsibilities. Aided by advanced technology, public orders meet and interact on the trading floor with a minimum of dealer interference. The result is competitive price discovery at the point of sale. Liquidity in the NYSE auction market system is provided by individual and institutional investors, member firms trading for their own accounts, and assigned specialists. The NYSE is linked with other markets trading listed securities through the Inter-market Trading System (ITS).
NYSE-assigned dealers, known as specialists, are responsible for maintaining a fair and orderly market in the securities assigned to them. Most trading, however, is conducted by brokers acting on behalf of customers, rather than by dealers trading for their own account. For this reason, the NYSE is often described as an agency auction market. The interaction of natural buyers and sellers determines the price of an NYSE-listed stock.
OTOP
ODD LOT
An amount of a security that is less than the normal unit of trading for that security. Generally, an odd lot is fewer than 100 shares of stock or five bonds.
ODD LOT THEORY
A technical analysis theory based on the assumption that the small investor is always wrong. Therefore, if odd lot sales are up - that is small investors are selling stock - it is probably a good time to buy.
OFFER
Indicates a willingness to sell a futures contract at a given price.
This will offset the chart by a specific number of bars in the chart Format menu.
ON BALANCE VOLUME (OBV)
Developed by Joe Granville. This study detects momentum. It's calculation relates volume to the change in price. This can help determine when a security is being bought or sold in a large number of buyers or sellers.
The Open displays each issue's open price for the day or current time frame selected.
OPTION
Gives the buyer the right, but not the obligation, to buy or sell stock at a set price on or before a given date. Investors, not companies, issue options. Investors who purchase call options bet the stock will be worth more than the price set by the option (the strike price), plus the price they paid for the option itself. Buyers of put options bet the stock's price will go down below the price set by the option.
OPTION CHAIN
The Option Chain shows the available options for the selected symbol that is loaded. To the right of the symbol you can modify the Expiration Month.
OSCILLATOR
A momentum line that fluctuates off a center, usually a zero value line. They are used to measure overbought/oversold levels, show negative and positive divergence, and can be used to measure a price move's velocity.
OTC MARKET
The security exchange system in which broker-dealers negotiate directly with one another rather than through an auction on an exchange floor. The trading takes place over computer and telephone networks that link brokers and dealers around the world. Both listed and OTC securities, as well as municipal and U.S. government securities, are traded in the OTC market.
A call option is out-of-the-money if the strike price is greater than the market price of the underlying security. A put option is out-of-the-money if the strike price is less than the market price of the underlying security.
OVERBOUGHT / OVERSOLD
An indicator that attempts to define when prices have moved too far and too fast in either direction and thus are vulnerable to reaction.
PTOP
PAGES
Pages of Charts and other applications that are loaded can be saved or opened.
PARABOLIC SAR
The Parabolic SAR displays the "Stop And Reverse" spots in a specific market. If the market crosses or touches one of the points it is designed to indicate that the position should be reversed, hence the stop and reverse.
PE RATIO OR PRICE/EARNING RATIO
The PE ratio is figured by dividing the price of a stock by the company earnings per share. An example would be a stock selling at $40, with earnings at $4 per share for the previous year, has a PE ratio of 10 (40/4 = 10).
The PEG ratio is a common valuation ratio calculated by dividing the F1 P/E ratio by the long-term growth consensus estimate. A low PEG ratio may indicate that a stock is undervalued.
An interest in the market, either long or short, in the form of open contracts.
PREFERRED STOCK
A security that shows ownership in a corporation and gives the holder a claim, prior to the claim of common stockholders, on earnings and also generally on assets in the event of liquidation. Most preferred stock pay a fixed dividend, stated in a dollar amount or as a percentage of par value. This stock does not usually carry voting rights.
PREMIUM
The price of an option contract, determined on the exchange, which the buyer of the option pays to the option writer for the rights to the option contract.
The stated price per share for which underlying stock may be purchased (in the case of a call) or sold (in the case of a put) by the option holder upon exercise of the option contract.
Shows the "multiple" of earnings at which a stock sells. Determined by dividing current price by current earnings per share (adjusted for stock splits). Earnings per share for the P/E ratio is determined by dividing earnings for past 12 months by the number of common shares outstanding. Higher "multiple" means investors have higher expectations for future growth, and have bid up the stock's price.
Shows the relationship of stock price to the company's net worth. A ratio of 4 means that the stock price is 4 times (or 400% of) the book value. Usually, the higher this ratio, the greater the risk.
PROGRAM TRADING
Trades based on signals from computer programs, usually entered directly from the trader's computer to the market's computer system and executed automatically.
PROTECTIVE STOP
A predetermined exit point used to limit losses in cases where the market goes against your position.
An option contract that gives the holder the right to sell (or "put"), and places upon the writer the obligation to purchase, a specified number of shares of the underlying stock at the given strike price on or before the expiration date of the contract.
Opposite of a CALL.
QTOP
QUICK LOAD
The Quote Sheet/Window is where one can list any and all symbols that they wish to follow.
QUICK RATIO
Cash and equivalents plus receivables divided by current liabilities (i.e., debt) for a given corporation.
QUOTE SHEET
The Quote Sheet/Window is where one can list any and all symbols that they wish to follow.
RTOP
RSI - RELATIVE STRENGTH INDEX
This indicator was developed by Welles Wilder Jr. Relative Strength is often used to identify price tops and bottoms by keying on specific levels (usually "30" and "70") on the RSI chart which is scaled from 0-100. The study is also useful to detect the following:
1. Movement which might not be as readily apparent on the bar chart
2. Failure swings above 70 or below 30 which can warn of coming reversals
3. Support and resistance levels
4. Divergence between the RSI and price which is often a useful reversal indicator
The Relative Strength Index requires a certain amount of lead-up time in order to operate successfully. The formula for calculating the RSI is:
# rsi=100-(100/1-rs)
# rs= average of x day's up closes divided by average of x day's down closes
RANGE
A security's low price and high price for a particular trading period, such as the close of a day's trading, the opening of a day's trading, or a day, month or year.
RAY LINE
A trend line is a straight line that connects two or more price points and then extends into the future or past to act as a line of support or resistance.
RESET
Reset will reset the chart back to original scaling as well as original thickness of bars and to the original offset. Thus any and all formatting will be removed from the chart.
RESISTANCE
An area where sellers are expected to hold the price in. Often we will see a rest or reversal at areas of resistance.
The Return on Equity is a measure of a company's profitability that shows how much profit a company has generated with the money that shareholders have invested.
Revenue Comparison is a technique or approach used by corporations and government entities to better determine if revenue is trending, increasing or decreasing from one period to another in a consistent pattern. This information can be used in many different ways. Revenue comparison information can be used internally, within an industry, or by government entities for policy formation or administrative application.
The amount that is able to be lost in a potential trade.
Risk Graph
The Risk Graph is a detail oriented screen that shows a graphical view of the profit or loss of an option at different prices.
ROUND LOT
The normal unit of trading of a security, which are generally 100 shares of stock or five bonds
STOP
SEC
The Securities and Exchange Commission, the primary federal regulatory agency of the securities industry
Securities Investor Protection Corporation (SIPC)
A nonprofit membership corporation created by an act of Congress to protect clients of brokerage firms that are forced into bankruptcy. Membership is composed of all brokers and dealers registered under the Securities Exchange Act of 1934, all members of national securities exchanges and most NASD members. SIPC provides customers of these firms up to $500,000 coverage for cash and securities held by the firms (although coverage of cash is limited to $100,000).
SCALP
To trade for small gains. Scalping normally involves establishing and liquidating a position quickly, usually within the same day, hour or even just a few minutes.
A market sector is an accumulation of industrial groups with similar macro business characteristics.
SELLING SHORT
If an investor thinks the price of a stock is going down, the investor could borrow the stock from a broker and sell it. Eventually, s/he must buy the stock back on the open market. For instance, you borrow 1000 shares of XYZ on July 1 and sell it for $8 per share. Then, on August 1, you purchase 1000 shares of XYZ at $7 per share. You've made $1000 (less commissions and other fees) by selling short.
SETTLEMENT DATE
The date on which payment is made to settle a trade. For stocks traded on US exchanges, settlement is currently 5 business days after the trade, but this will be reduced to 3 days in 1995. For mutual funds, settlement usually occurs in the U.S. the day following the trade. In some regional markets, foreign shares may require months to settle.
1. The sale of a borrowed security, commodity or currency with the expectation that the asset will fall in value.
2. In the context of options, it is the sale (also known as "writing") of an options contract.
SHORT INTEREST
This is the total number of shares of a security that investors have sold short -- borrowed, then sold in the hope that the security will fall in value. An investor then buys back the shares and pockets the difference as profit.
SIDEWAYS TREND
This trend occurs when prices move up and down within an established range.
SLIPPAGE
The difference between estimated transaction costs and actual transaction costs. The difference is usually composed of revisions to price difference or spread and commission costs.
SIMPLE MOVING AVERAGE
A simple moving average calculates the average value of price over a period of time. It is determined by totaling closing prices of a stock over a defined period of time and dividing that by the total number of days in the period.
The amount of shares or size of trade.
SMALL ORDER EXECUTION SYSTEM (SOES)
Allows individual traders to participate in real-time day-trading on the NASDAQ exchange. Eliminates the normal 15 minute delays in price quotes and provides instant display of the bid and ask prices of a stock.
SORTING COLUMNS
Columns can be sorted in the Option Chain by clicking on the desired column.
SPECIALIST
A stock exchange member who stands ready to quote and trade certain securities either for his own account or for customer accounts. The specialist's role is to maintain a fair and orderly market in the stocks for which he is responsible.
(1) In a quotation, the difference between the bid and the ask prices of a security. (2) An options position established by purchasing one option and selling another option of the same class but of a different series.
SPREAD LINKING
Clicking the Spread option will drop down the color link window for Spreads and link the Risk Graph and Spread Select.
SPREAD SELECT
The Spread Select gives you the ability to type a symbol in and then click the Load button or press the Enter key on your keyboard to load the different available spread options.
STOCHASTIC
The Stochastic Indicator is based on the observation that as prices increase, closing prices tend to accumulate ever closer to the highs for the period. Conversely, as prices decrease, closing prices tend to accumulate ever closer to the lows for the period. Trading decisions are made with respect to divergence between % of "D" (one of the two lines generated by the study) and the item's price. For example, when a commodity or stock makes a high, reacts, and subsequently moves to a higher high while corresponding peaks on the % of "D" line make a high and then a lower high, a bearish divergence is indicated. When a commodity or stock has established a new low, reacts, and moves to a lower low while the corresponding low points on the % of "D" line make a low and then a higher low, a bullish divergence is indicated. Traders act upon this divergence when the other line generated by the study (K) crosses on the right-hand side of the peak of the % of "D" line in the case of a top, or on the right-hand side of the low point of the % of "D" line in the case of a bottom. Two variations of the Stochastic Indicator are in use: Regular and Slow. When the Regular plot of the Stochastic too choppy, the "Slow" version can often clarify the results by reducing the sensitivity of the calculations. The formula is: Note: 5 Days is the most commonly used value for %K %K=100 {(C-L5)/(H5-L5)} The %D line is a 3 day smoothed version of the %K line %D=100(H3/L3) where H3 is the 3 day sum of (C-L5) and L3 is the 3 day sum of (H5-L5).
An increase in the number of a corporation's outstanding shares that decreases the par value of its stock. The market value of the total number of shares remains the same. The proportional reductions in orders held on the books for a split stock are calculated by dividing the market price of the stock by the fraction that represents the split.
STOP ORDER
An order to sell a stock when the price falls to a specified level.
The stated price per share for which underlying stock may be purchased (in the case of a call) or sold (in the case of a put) by the option holder upon exercise of the option contract.
SUPPORT
An area where buyers are expected to hold the price up. Often we will expect a rest or reversal at areas of support.
An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors use to place trade orders. Every listed security has a unique ticker symbol, facilitating the vast array of trade orders that flow through the financial markets every day.
A unique series of letters assigned to a security for trading purposes. NYSE and AMEX listed stocks have three characters or less. Nasdaq-listed securities have four or five characters. If a fifth letter appears, it identifies the security as other than a single issue of common stock. They are also known as "ticker symbols".
Stock symbols are the most recognized type of ticker symbol. Stocks listed and traded on U.S. exchanges such as the NYSE have symbols with up to three letters. Nasdaq-listed stocks have four-letter symbols.
Ticker symbols for options are structured to represent the underlying stock ticker they are based on and also their expiration date and contract type (either a put or a call option). Mutual fund ticker symbols are usually alphanumeric and end with the letter X to differentiate them from stock symbols.
SYMBOL LINKING
Clicking the symbol icon in any window will drop down the color link window and link the current window with any other window that is using the same colored link.
TTOP
TECHNICAL ANALYSIS
A method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security's intrinsic value.
Theta measures the time decay in an option, or the amount of money an option will lose each day due to the time passing. Theta is the expected change in option price due to the passage of time. Theta is expressed as the loss of time value per day. Thus, a theta of -.1 indicates that the option is losing $.10 per day.
For at the money options, theta increases as an option approaches the expiration date. Theta is very little for a long-term option, and increases as expiration nears. For in and out of the money options, theta decreases as an option approaches expiration.
Theta is greater for more volatile assets, because volatility increases the option premium by increasing the time value of the premium.
However, because time decay is generally considered to favor the option writer, a short position in options is said to have positive position theta. The net of the positive and negative position thetas is the total position theta of the portfolio.
THICKEN BARS
By selecting Thicken Bars it will thicken the bars of the chart or make them bolder and larger.
THIN BARS
By selecting Thin Bars it will thin the bars of the chart or make them thinner and skinnier.
This refers to a change in the price of a security. An up tick occurs when the last trade in a security takes place at a higher price than the prior trade. A down tick occurs when the last trade in a security takes place at a lower price than the prior trade. An indicator may be fashioned from the difference between the number of NYSE issues showing up ticks on the last trade and the number of NYSE issues showing down ticks on the last trade. This indicator is known as the TICK, and is found on many quote screens. A TICK of +236 means 236 more NYSE issues last traded on up ticks than those trading on down ticks.
A trade is a transaction involving one party either buying or selling a security. This is usually handled though a brokerage company.
TRADE SEEKER
The Trade Seeker gives the ability to quickly scan the market based off of any of the pre-built scans.
TRADING HALT
A pause in the trading of a particular security on one or more exchanges, usually in anticipation of a news announcement or to correct an order imbalance. During a trading halt, open orders may be canceled and options may be exercised.
The difference between the high and low prices traded during a period of time; with commodities, the high/low price limit established by the exchange for a specific commodity for any one day's trading.
TREND
The general direction of the market.
TRIPLE-WITCHING
This occurs on the third Friday of March, June, September and December when futures and stock options, based on the S&P 500 index, all expire on the same day.
TRIN (TRaders'INdex)
Also known as Arms Index:= #advancing issues/#declining issues Total up volume/total down volume and advance/decline market indicator. Less than 1.0 indicates bullish demand, while above 1.0 is bearish. The index often is smoothed with a simple moving average. NYSE #adv/#dec/advVol/decVol
This column in the Spread Select shows the different types of spread strategies that are available for the selected symbol.
UTOP
UNCOVERED CALL
A short call option position in which the writer does not own shares of underlying stock represented by his option contracts. Also called a "naked" call, it is much riskier for the writer than a covered call, where the writer owns the underlying stock. If the buyer of a call exercises the option to call, the writer would be forced to buy the stock at market price.
UNCOVERED PUT
A short put option position in which the writer does not have a corresponding short stock position or has not deposited, in a cash account, cash or cash equivalents equal to the exercise value of the put. Also called "naked" puts, the writer has pledged to buy the stock at a certain price if the buyer of the options chooses to exercise it. The nature of uncovered options means the writer's risk is unlimited.
UNDERLYING SECURITY
Options: the security object to being purchased or sold upon exercise of an option contract. For example, IBM stock is the underlying security to IBM options.
UPTREND
A series of higher highs and higher lows in the market, indicating the trend.
VTOP
Vega is the sensitivity of the option price to changes in implied volatility. Vega measures the change in the option premium due to changes in the volatility of the underlying stock, and is always expressed as a positive number.
Vega tends to be the greatest when the option is at the money and least when the option is far out of the money or in the money.
Each individual option has its own vega and can react differently to changes in volatility. Vega estimates how much an option price would change when volatility changes 1%. It seems that volatility impacts are greater in the at the money options as opposed to the in or out of the money options. Vega seems to impact calls more than puts. If you look at longer term options such as LEAPS you will see the affect more clearly.
- Long calls and long puts; always have positive vega.
- Short calls and short puts; always have negative vega.
- Stock has zero vega; it’s value is not affected by volatility.
Positive vega- Option price increases when volatility increases, decreases when volatility decreases.
Negative vega-Option price decreases when volatility increases, increases when volatility decreases.
Example:
XYZ March 50 Call is going for $4, with Vega 0.20, volatility of ABC stock is 25%. Say the volatility increases to 26%. XYZ March 50 Call’s price will rise to $4.20. If the volatility drops to 24%, XYZ March 50 Call value drops to $2.80.
Vega falls when volatility drops or the option closes in on expiration. If there is more time left, vega should be higher.
Vega can move sometimes without any changes in the underlying volatility changing. For example, if expectation changes for a stock because of a impending earnings release, or an important news announcement. The vega can also rise quickly when things like a stock market crash or sudden move in a stock price.
This analysis is based on the idea that stocks bottom from "panic" selling, after which a rebound is imminent. One way of measuring this phenomenon is to observe a widening range between high and low prices each day. In general a progressively wider range, observed over a relatively short period of time, can indicate that a bottom is near. Price tops are generally reached at a more leisurely pace and can be characterized by a narrowing of the price range. This measure of the trading range takes place over a specified period in order to determine whether or not an issue is being "dumped" and is approaching a bottom. A pre-requisite to a valid bottom is an increase in the volatility line above the reference line. In a similar manner, an indication of an imminent top would be a decrease in the volatility line below the reference line. As long as volatility is rising, in all probability a stock will not approach a top. It should be noted that this study should be used in conjunction with trend following analyses and momentum oscillators for confirmation and accuracy.
The number of shares or contracts traded in a security or an entire market during a given period of time. It is simply the amount of shares that trade hands from buyers to sellers as a measure of activity. If a buyer of a stock purchases 1000 shares from a seller, then the volume for that period increases by 1000 shares based on that transaction.
Volume is an important indicator in technical analysis as it is used to measure the worth of a market move. If the markets have made a strong price move either up or down the perceived strength of that move depends on the volume for that period. The higher the volume during that price move, the more significant the move.
WTOP
WARRANT
A security entitling the holder to buy a proportionate amount of stock at some specified future date at a specified price, usually one higher than current market. This "warrant" is then traded as a security, the price of which reflects the value of the underlying stock. Warrants are usually issued as a "sweetener" bundled with another class of security to enhance the marketability of the latter.
WRITER
The seller of an option contract.
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