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Writing an option when the writer owns the underlying security, and writes the option on a one to one ratio with the stock. A short call is covered if the underlying security is owned. A short put is covered if the underlying security is also short in the account. A short call is covered if a long call of the same underlying security is owned in the same account with the same or lower strike. A short put is covered if a long put of the same underlying security is owned in the same account with a strike price equal to or greater than the strike of the short put.

A trade that occurs when two accounts within the same Participating Organization/Member wish to buy and sell the same security at an agreed price and volume. With some approved exceptions, crosses can only occur within the current bid and ask for the stock.

With dividend. The owner of shares purchased cum dividend is entitled to an upcoming already-declared dividend. The opposite of this is ex dividend.

With rights. The owner of shares purchased cum rights is entitled to forthcoming, already-declared rights. The opposite of this is ex rights.

The trading day before the ex-dividend/distribution (ex-d) date. It is the last day on which the securities can be traded and on which the buyer is entitled to the dividend/distribution.

A stock of a company in an industry sector that is particularly sensitive to swings in economic conditions.

The maximum price advance or decline permitted for a futures contract in one trading session compared to the previous day’s settlement price.

The highest price that a security has traded at during the day.

The lowest price that a security has traded at during the day.

An order that is valid only for the day it is entered. If the order is still outstanding when the market closes, it will be purged overnight.