Options as a strategic investment Flashcards
Vocabulary
combustion engine
Combustion, or burning, is a high-temperature exothermic redox chemical reaction between a fuel (the reductant) and an oxidant.
“How long can the internal combustion engine go without oil change.”
amass(ed)
Accumulate. amass a great fortune. To collect into a mass.
“After he has amassed a fairly large series of debits…”
horrendous
Extremely unpleasant, horrifying, or terrible.
“..a sharp drop in the stock price may cause horrendous losses…”
devastating detriment
A state of being severely damaged.
“…can be a devastating detriment to an option seller, especially a naked option seller “
distort
give a misleading or false account or impression of.
“Perhaps this example was distorted by the fact that an implied volatility of 20% is a fairly low number to begin with.”
to wear away
Become ground down or deteriorate.
“…all they have to do is to sit back and wait to collect the premium as time wears it away”
detrimental
Causing harm or damage
“Their decision could be detrimental to the future of the company”
ironclad
impossible to change or weaken
“The new contract provides employees with ironclad job security”
deplorable
to be very bad/poor
“The children were raised in deplorable conditions.”
“…will find himself in a deplorable position”
impart
to give something a particular feeling, quality, or taste
“If nohting else, these examples should impart to the reader how important it is to be aware of implied volatility.”
frailty
weakness and lack of health or strength
“Having seen frailties of the endpoint calculator…”
erratic(ally)
moving or behaving in a way that is not regular, certain, or expected.
“The stock has bee behaving erratically for several months, due to overall market volatility being high…”
detract
to make something seem less valuable or less deserving of admiration than it really is.
“Still this doesn’t detract from the basic premise that stocks can move farther than the normal distribution would indicate.”
