1 stock option - One stock option represents the right to buy or sell 100 shares of the underlying stock at a certain price or time
at the money - At the money, or ATM, is the condition where an option price exactly matches the current strike price
bear market - A bear market is a market in which prices are FALLING (encouranges selling)
bull market - A bull market is a market in which prices are RISING (encourages buying)
call option - A call option is the right to BUY a stock or commodity
close your position - Closing your position means executing a security transaction that is the exact opposite of an open position, thereby nullifying it and eliminating the initial exposure.
commodity - A commodity is an economic good or service where the demand for it has no qualitative differentiation across a market (i.e. corn, petroleum, pork bellies, etc.) The market treats its instances as equivalent or nearly so with no regard to who produced them.
covered spread - A covered spread is used in margin limited accounts, could be a calendar spread or other.
delta - Delta is the amount by which the price of an option changes for every dollar move in the underlying contract.
diagonal spread - A diagonal spread is trading a combination of options for a given commodity at different strikes across different months.
equity - Equity is a stock or any other security representing an ownership interest. This may be in a private company (not publicly traded), in which case it is called private equity.
exchange-traded fund - An exchange-traded fund, or ETF, is a marketable security that tracks a stock index, a commodity, bonds, or a basket of assets. Although similar in many ways, ETFs differ from mutual funds because shares trade like common stock on an exchange.
exercise - To "exercise" the option means to act on the rights an equity option contract imparts to its buyer to either buy (in the case of a call) or sell (in the case of a put) 100 shares of the underlying security at the strike price per share at any time before the contract expires.