BigDipperOptions Glossary
A
API (Application Programming Interface)A set of tools that allows different software systems to communicate. BigDipperOptions uses APIs to fetch option chain data and stock prices.
B
Bid / AskThe bid is the price someone is willing to pay for an option; the ask is the price someone is willing to sell it. The difference is the spread, which affects trade execution cost. Bid-Ask Spread
Difference between the bid and ask prices; smaller spreads generally indicate better liquidity.
C
Call OptionA contract that gives the holder the right (but not obligation) to buy the underlying stock at a specified strike price before expiration. Call Wall
Strike price with the largest concentration of call options in terms of Gamma Exposure (GEX). Acts as a resistance zone in the market. Covered Call
An options strategy where you own the underlying stock and sell a call option against it to generate premium income.
D
Delta (Δ)Measures how much an option’s price is expected to change for a $1 move in the underlying stock. Delayed Data
BigDipperOptions uses 15-minute delayed options data sourced from OPRA, not live prices.
E
Expiry / ExpirationThe date when an option contract ceases to exist. After this date, the option can no longer be exercised.
G
Gamma (Γ)Measures the rate of change of delta as the stock price changes. High gamma indicates that delta will shift quickly with small price moves. Gamma Exposure (GEX)
Aggregate gamma of options at different strikes; shows how market makers’ hedging activity could affect the stock price. GEX Weight Distribution
Visual representation of where gamma is concentrated across strike prices. GEX Flip
A change in the sign of gamma exposure, indicating potential shifts in market stability or volatility.
I
IV (Implied Volatility)Market expectation of how much the stock price might move in the future. Higher IV means higher option premiums.
M
Max Gamma Call / PutStrike price where gamma is at its peak for calls or puts; these are sensitive points where small stock moves can lead to larger hedging adjustments.
O
Option ChainA table or dataset showing all available calls and puts for a stock, with strikes, expiries, and prices. Options Trend Graph
Visual representation of historical buying and selling activity of options.
P
Probability ScoreEstimate of the likelihood that an option or spread will be profitable by expiry. Put Option
A contract that gives the holder the right (but not obligation) to sell the underlying stock at a specified strike price before expiration. Put Wall
Strike price with the largest concentration of put options in terms of Gamma Exposure (GEX). Acts as a support zone.
R
Reward-to-Risk RatioPotential profit divided by potential loss for a trade or spread.
S
SpreadA strategy that involves buying and selling two or more options simultaneously to control risk and reward. Common types include bull call spreads, bear put spreads, and iron condors. Strike Price
Price at which an option can be exercised.
T
Theta (Θ)Measures the time decay of an option; how much value an option loses as it approaches expiration. Trade Strategy
A plan using options and/or stock positions to achieve a specific risk/reward profile.
V
Vega (ν)Measures sensitivity of an option’s price to changes in implied volatility.
W
Wheel StrategyA strategy that combines selling cash-secured puts to potentially acquire stock, then writing covered calls against owned stock to generate premium. It’s a repeatable income-focused approach.