Position Information         

Bid, Ask, Cover, Assignment, Roll, Debit, Credit

Bid Price

The price at which a buyer is willing to buy an option or stock.

Ask Price

The price at which a seller is offering to sell an option or stock.

Contingent Order

An order that will execute only when specific circumstances occur, such as when the price of the underlying security for an option order falls to a certain level.

Cover

To buy back an option that was initially sold to open a position. This purchase will close out the transaction.

Assignment

The receipt of an exercise notice by an option writer (seller) that obligates him to sell (in the case of a call) or purchase (in the case of a put) the underlying security at the specified strike price.

Automatic Exercise

If an in-the-money option is expiring, the Options Clearing Corporation automatically exercises an option for the option owner to protect his asset.

Roll Forward (Roll Out, Rolling)

Close-out options at a near-term expiration date and and replace them with longer-term options.

Roll Up

Close out options at a lower strike and replace them with options at a higher strike price.

Credit

A credit transaction is one in which the proceeds from the net sale are larger than the cost of the net purchase, bringing money into the account.

Debit

A debit transaction is one in which the proceeds from the net sale are smaller than the cost of the net purchase, so that money goes out of the account.

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