Glossary

Quick definitions for every term you’ll see in Tradient. Sorted alphabetically. If something here is unclear, the linked deep-dive articles explain in full.

Annualized return

A return scaled to a 1-year basis so trades of different durations can be compared on the same axis. A 30-day trade returning 2% has an annualized return of roughly 24%.

ATM (at-the-money)

An option whose strike is approximately equal to the current underlying price.

Assignment

The event when a short option you sold gets exercised by the long counterparty. Short puts → you buy the stock at the strike. Short calls → you sell the stock at the strike.

Black-Scholes

The closed-form options pricing model that underpins every number Tradient computes. See Black-Scholes & Greeks.

Breakeven

The underlying price at which a position’s P&L is zero at expiration. Multi-leg trades have two breakevens (one on each side).

Cash-secured put (CSP)

A short put fully collateralized by cash equal to the strike × 100. See Cash-Secured Put.

Conviction

A 0-100 score showing how balanced a result’s underlying signals are. High conviction = many components agree.

Covered call

Selling a call against 100 long shares of the underlying. See Covered Call.

Credit spread

A two-leg options trade where the short leg costs more than the long leg, resulting in a net credit at entry. Bull put spreads and bear call spreads are credit spreads.

Debit spread

A two-leg options trade where the long leg costs more than the short leg, resulting in a net debit at entry. Bull call spreads and bear put spreads are debit spreads.

Delta

The change in option price per $1 change in the underlying. For calls, 0 to 1; for puts, −1 to 0. Roughly equals the probability the option finishes ITM.

DTE

Days to expiration. Tradient’s scans default to windows like 7-45 DTE for income strategies.

Gamma

The rate of change of delta. Highest at the money, lowest deep ITM or OTM.

IV (implied volatility)

The market’s consensus annualized expected standard deviation of returns, backed out of option prices.

IV rank

Where current IV sits relative to the past year’s range. 0 = at the year’s low; 100 = at the year’s high. See IV rank & regime.

IV percentile

The percent of trading days in the past year where IV was below the current level. Similar intuition to IV rank, slightly different shape.

Iron condor

A four-leg defined-risk neutral strategy: short put + long put below current price + short call + long call above current price. See Iron Condor.

ITM (in-the-money)

A call with strike below current price, or a put with strike above. The option has intrinsic value.

Focus mode

Tradient’s deep-analysis tab inside Radar for a single trade — Greeks, Monte Carlo, P&L profile, what-if. Access via the Focus tab or /radar?focus=1. See Focus mode deep analysis.

Long premium

A position that pays a debit at entry — i.e., you own options. Long straddles, debit spreads, etc.

Long straddle

Long ATM call + long ATM put. Profits from a large move in either direction. See Long Straddle.

Mark

The midpoint between the bid and ask. Tradient uses mark for unrealized P&L display.

Max loss

The most a position can lose at expiration, assuming no early exit. Defined for spreads and condors; undefined for naked shorts and short strangles.

Max profit

The most a position can make at expiration. For credit strategies, equal to the credit collected.

Monte Carlo

A simulation technique that generates many possible terminal stock prices and computes the strategy’s P&L for each. Tradient uses 10,000 simulations per analysis. See Monte Carlo simulation.

OCC symbol

The Options Clearing Corporation’s standard symbol format identifying a specific option contract. Looks like SPY261218C00450000 (SPY, expires Dec 18 2026, call, strike $450).

OTM (out-of-the-money)

A call with strike above current price, or a put with strike below. The option has no intrinsic value, only time value.

POP (probability of profit)

The probability the trade finishes in the green at expiration, computed under the Black-Scholes log-normal assumption. See Edge, POP, and R:R.

Radar

Tradient’s scanner — the surface where you find trade candidates. See Radar overview.

Regime fit

A 0-100 score showing how well a trade aligns with the current market regime (VIX bucket + per-name IV rank).

Rho

The change in option price per 1 percentage point change in the risk-free rate. Usually negligible at retail timeframes.

Risk:reward (R:R)

For defined-risk trades, the ratio of max profit to max loss. A 0.25 R:R risks $4 to make $1.

Roll

Closing a position and reopening at a later expiration (or different strikes), typically to give a tested trade more time to recover.

Short premium

A position that pays a credit at entry — i.e., you sold options. CSPs, condors, credit spreads, strangles.

Short strangle

Short OTM call + short OTM put. Undefined-risk premium collection. See Short Strangle.

SnapTrade

The brokerage aggregator Tradient uses to read positions and route orders. See Connecting your broker.

Theta

The change in option price per day from time decay alone. Long options have negative theta; short options have positive theta.

Trade Edge

Tradient’s expected-value column: POP × max profit − (1 − POP) × max loss.

Tradient Score

A 0-100 composite combining POP, R:R, IV fit, liquidity, and annualized return. See Tradient Score.

Underlying

The stock or ETF that an option is written on.

Vega

The change in option price per 1 percentage point change in implied volatility. Long options are long vega; short options are short vega.

Watchlist

A named group of tickers used to scope scans and alerts. See Watchlists.

Wheel

The rotation of selling cash-secured puts on a stock you want to own → getting assigned → selling covered calls against the shares → getting called away → repeat.