Glossary
1-2-3 iron butterfly: A strategy employing three strikes for a series of butterflies, with an increasing number of options positions at each strike.
1-2-3 iron condor: A condor with three strikes, with the middle expiration a reverse iron condor; and with each subsequent expiration, the number of contracts is increased.
American style: The type of option most common for underlying stock in the U.S. markets. An American option can be exercised at any time.
Annualize: A process of restating a net return as if the position were open for one full year; this is necessary to make valid comparisons between two or more options trades with dissimilar periods.
Ask: The price a buyer pays for buying an option.
Asset allocation: A strategy intended ...
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