My market maker friend DVH used to always say option trading is the closest thing to professional sports. With the NFL football season kicking off tonight I thought it would be a good time to review option terminology to see if his assessment is really true.
Hang time – Waiting for the market to open.
Ineligible Receiver – Not approved for complex strategies.
Down – How you feel after a losing trade.
First Down – First losing trade.
Punt – The act of closing out a losing trade.
Intentional Grounding – Throwing mouse at flat screen after punt.
Play Clock – Time decay.
Pylon – What some pit traders try to do.
Roll-Out – You calendar spread traders do this all of the time.
Third and Long – You’re bullish and the market turns bearish.
Stiff Arm – Overtrading.
Fair Catch – Breakeven.
Safeties – Puts.
Hand off – Friend watching your position while you’ve gone fishin’.
Home Field Advantage – Trading out of your house.
Personal Foul – Trading out of your house in boxer shorts.
Man in Motion – Constantly changing your market forecast.
Nickel Defense – Buying back your short options for a plain nickel.
Offside – Option position put on too early.
In the Pocket – Taking money out of your trading account.
Wild Card – Crazy, big risk taking trader.
Snap – If you trade out of your comfort zone you will.
Cover 2 – Trading 2 covered calls.
Audible – Adjusting a losing trade.
Incomplete Pass – No trade.
Double Coverage – Two protective puts.
1st Round Pick – A trade that never lived up to lofty expectations.
(In Chicago this is called a “Benson”. Also commonly referred to as a “Leaf” or “Bosworth”)
Yep, DVH was right! Trading is just like professional sports. Enjoy the football season and may all your trades be good ones!