These terms stay in English on purpose; meanings are below.
- Call
- An option giving the right to buy the Underlying at a Strike.
- Put
- An option giving the right to sell the Underlying at a Strike.
- Strike
- The fixed price the option can be exercised at.
- Expiry / expiration
- The date the contract ends; DTE is days left until then.
- DTE
- Days to expiration: calendar days left until expiration.
- Moneyness
- Where Strike sits vs Underlying price: ITM, ATM or OTM.
- ITM / In-the-money
- Call: Underlying > Strike; Put: Underlying < Strike. Has intrinsic value.
- ATM / At-the-money
- Strike is very close to Underlying price.
- OTM / Out-of-the-money
- Call: Underlying < Strike; Put: Underlying > Strike. Intrinsic is zero.
- Premium
- Option price per share; seen as Bid / Ask / Last.
- Bid / Ask / Last
- Bid, ask, and last trade price.
- Long / Short
- Long = buy (rights); Short = sell / write (obligation).
- Debit / Credit
- Debit: net premium paid. Credit: net premium received.
- Intrinsic / extrinsic
- Intrinsic: the ITM part. Extrinsic: Premium from time and IV.
- Underlying
- The stock, index, or asset the option is on.
- Greeks
- Risk measures: Delta, Gamma, Theta, Vega.
- Delta
- Approx. option-price change when Underlying moves $1.
- Gamma
- How much Delta changes when Underlying moves.
- Theta
- Expected time decay after one day.
- Vega
- Approx. Premium change if IV rises one point.
- IV / implied volatility
- Market-priced expected swing; inflates or deflates Premium.
- Payoff
- P/L vs price; usually drawn at expiration.
- Break-Even
- Underlying price where the trade is flat at expiration.
- Assignment
- Exercise of a short option; you may deliver or take stock.
- Spread
- A structure with several legs in the same or nearby expirations.
- Vertical
- Same expiration, different Strikes.
- Calendar / horizontal
- Same Strike, different expirations.
- Butterfly
- Three-strike structure: short in the middle, long on the wings (or the reverse).
- Iron Condor
- OTM Put Spread + OTM Call Spread; Neutral, defined risk/reward.
- Covered Call
- Long stock + Short Call; extra income, capped upside.
- Cash-Secured Put / CSP
- Cash-backed Short Put; you may buy stock if it falls.
- Wheel
- Cycle: buy stock via CSP, then write a Covered Call.
- LEAPS
- Long-dated options (often 1+ year to expiration).
- Bullish / Bearish / Neutral
- Up, down, or sideways view.
- Hedge
- An offsetting position that reduces current risk.
- Liquidity
- Tight Bid–Ask and depth; easier to enter and exit.
- Roll / Roll-out
- Close the open leg and reopen it at a later expiration.
- Earnings
- Earnings print; IV often rises into the event.
- Builder
- This page: build legs and watch Payoff and Greeks live.
- FAQ
- Frequently asked questions.
JSM Options Strategy Builder is a free and fully interactive options strategy builder and simulator. Create and analyze multi-leg options strategies including
Bullish:
Long Call,
Covered Call,
Cash Secured Put,
Bull Call Spread,
Long Straddle,
Long Strangle,
Long Call Butterfly,
Call Condor
Bearish:
Long Put,
Bear Put Spread,
Long Straddle,
Long Strangle,
Long Put Butterfly,
Put Condor
Neutral:
Short Straddle,
Short Strangle,
Iron Condor,
Iron Butterfly,
Calendar Spread,
Jade Lizard
Synthetic stock and capital-efficient:
Poor Man's Covered Call,
Call Ratio Spread (1×2),
Put Ratio Spread (1×2),
Synthetic Long,
Synthetic Short,
Risk Reversal (synthetic tilt),
and custom structures. View payoff charts, Greeks, profit/loss, break-even, probability of profit, and expected move all in one clean interface.
Designed for SPX and equity options traders who want a fast, ad-free, beginner-friendly yet powerful options strategy builder - No sign - up, no account required.