> ## Documentation Index
> Fetch the complete documentation index at: https://docs.bigdipperoptions.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Glossary

# BigDipperOptions Glossary

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## 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.

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## B

**Bid / Ask**\
The 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.

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## C

**Call Option**\
A 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.

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## 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.

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## E

**Expiry / Expiration**\
The date when an option contract ceases to exist. After this date, the option can no longer be exercised.

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## 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.

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## I

**IV (Implied Volatility)**\
Market expectation of how much the stock price might move in the future. Higher IV means higher option premiums.

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## M

**Max Gamma Call / Put**\
Strike 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.

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## O

**Option Chain**\
A 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.

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## P

**Probability Score**\
Estimate 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.

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## R

**Reward-to-Risk Ratio**\
Potential profit divided by potential loss for a trade or spread.

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## S

**Spread**\
A 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.

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## 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.

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## V

**Vega (ν)**\
Measures sensitivity of an option’s price to changes in implied volatility.

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## W

**Wheel Strategy**\
A 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.