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ETH
18:59 ET
Amagedon
Glossary
NQ
Nasdaq-100 E-mini
—
every 10s
39 terms. Tap any dotted word on the site to see its meaning.
Options and dealers
Dealer gamma
+
Whether the banks that sell options will slow price moves down or speed them up.
Long (positive) gamma
+
Dealers buy dips and sell rallies, so moves tend to get absorbed.
Short (negative) gamma
+
Dealers sell into drops and buy into rallies, so moves tend to run further.
Gamma flip
+
The price where dealer gamma switches between positive and negative.
Gamma wall
+
A strike with a lot of dealer gamma, where price tends to slow down or stick.
Open interest
+
How many option contracts are open at a strike right now.
Put/call ratio
+
Puts compared with calls — a rough read of how defensive options traders are.
Implied volatility
+
How big a move the options market is pricing in.
Expected move
+
The range the options market prices for a given expiry.
Skew
+
How much more downside protection costs than upside bets.
Max pain
+
The expiry price at which the most options would expire worthless.
Delta, vanna and charm
+
Other measures of how dealer hedging shifts with price, volatility and time.
Volume profile
Value area
+
The price range where 70% of the session's volume traded.
POC (point of control)
+
The single price with the most volume — the market's "fair price" so far.
VAH and VAL
+
The top and bottom edges of the value area.
Naked POC
+
A past session's POC that price has not traded back through since.
HVN and LVN
+
Thick shelves of volume (HVN) and thin pockets between them (LVN).
Relative volume
+
Today's volume compared with a normal day at the same time.
Unbacked excursion
+
Price outside value on light volume — a move nobody is backing.
The session
Main session (RTH)
+
The day session when most of a market's volume trades.
Overnight session
+
Futures trading outside the main session, from 6 PM ET.
Initial balance
+
The range of the first hour of the main session.
Trend day
+
A day that keeps moving one way and closes near its extreme.
Range (balance) day
+
A day that rotates inside a range instead of trending.
Gap and gap fill
+
The jump between yesterday's close and today's open, and whether price trades back to close it.
ATR and ADR
+
How far a market normally moves in a day.
Testing and odds
Base rate
+
What you would score by always guessing the more common direction.
Hit rate
+
How often a call got the direction right.
Edge
+
A rule that beats the base rate by more than luck would explain.
Backtest
+
Replaying a rule over past data to see how it would have done.
Live record
+
Calls made before the outcome was known, graded afterwards.
Sample size
+
How many calls a result is based on.
Tape and regime
Realized volatility
+
How much price has actually been moving.
Choppy vs trending tape
+
Whether price is going somewhere or back and forth.
Relative strength
+
How a sector or stock is doing compared with the index.
Spread (bps)
+
The gap between the best bid and offer — the cost of getting in and out.
Trading terms
Fade
+
Trading against a move — selling strength or buying weakness.
Stop and invalidation
+
The price that proves the idea wrong, where you get out.
Futures root and micros
+
The short code for a futures market, and its smaller version.
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