Write

To write an option is to sell an option. The person who sells the option is considered to be the writer.

Symbol Change

A change in a listed issuer’s stock symbol, which may be required by the Exchange in the context of an issuer’s reorganization or may be made at the request of the issuer. A requested symbol is available for use if it is appropriate for the type of security and the issuer’s voting structure.

Value Stocks

Companies currently out of favor with investors. These companies usually have low valuation ratios (price/earnings less than the S&P 500, price/sales ratio less than 2, price/book ratio less than 2). 

Venture Capitalist

An investor involved in financing a company’s operations before going public in exchange for an ownership percentage.

Stop Order

An order placed which is not at the current market price. It becomes a market order once the security touches the specified price. Buy stop orders are placed above the present market price. Sell stop orders are placed below the present market price (also known as a stop loss). If a stock gaps past the stop order, it becomes a market order and is filled at the next trading price.

Triple Witching

the third Friday of March, June, September and December is the day when index futures, index future options, and certain stock options all expire. Triple Witching Fridays are know for high volatility.

Technical Analysis

The study and use of price and volume charts and other technical indicators to make trading decisions. Technical analysis attempts to use past stock price and volume information to predict future price movements. Fundamentally, technical analysis shows in graphic form investor sentiment, both greed and fear. Understanding that concept is key to understanding technical analysis and being able to use it effectively to trade securities. With proper technical analysis, you can be ready for certain moves, and when your analysis is confirmed by the actual start of the move, trading positions can be taken. Technical analysis can be used for short-term trading or long-term position buying. We use if for both, and the two are closely related.