Glossary Terms


Blue-Chip Giants

Refers to the Magnificent Seven as large-cap, financially stable companies with a history of stable performance and reliable dividends.

Core Competencies

The unique strengths and capabilities that set companies within the Magnificent Seven apart from their competitors and contribute to their sustained success.

Core Holdings

Stocks within the Magnificent Seven that form the essential and foundational components of an investor's long-term investment portfolio.

Defensive Holdings

Stocks within the Magnificent Seven known for their stability and resilience during economic downturns, often considered as defensive positions in a portfolio.

Dividend Aristocrats

Companies within the Magnificent Seven with a history of consistently increasing dividend payments for at least 25 consecutive years.

FAANG Stocks

An acronym for Facebook, Apple, Amazon, Netflix, and Google (Alphabet), representing a group of highly successful and influential technology and internet-focused stocks.

Growth Stocks

Stocks within the Magnificent Seven known for their consistent and substantial growth in earnings and market value.

Investment Icons

Stocks within the Magnificent Seven that are considered iconic and widely respected by investors for their historical performance and market influence.

Long-Term Investing

An investment strategy focused on holding stocks within the Magnificent Seven for an extended period to benefit from their consistent growth and stability.

Magnificent Seven

A term referring to a select group of seven iconic and high-performing stocks that are widely recognized for their sustained excellence and market dominance.

Market Cap Leaders

Refers to the Magnificent Seven as leaders in market capitalization, representing a significant portion of the total market value of the overall stock market.

Market Dominance

The extent to which a company within the Magnificent Seven dominates and controls its market segment, often resulting in a significant competitive advantage.

Market Icons

Stocks within the Magnificent Seven that have become iconic symbols of success and excellence in the financial markets.

Market Leaders

Companies within the Magnificent Seven that consistently demonstrate leadership in their respective industries and contribute significantly to overall market trends.

Market Pioneers

Companies within the Magnificent Seven recognized for their innovation and pioneering efforts, shaping the direction of their industries.

Market Resilience

The Magnificent Seven's ability to withstand market fluctuations and economic challenges, showcasing resilience and adaptability.

Revenue Titans

Companies within the Magnificent Seven recognized for their substantial and consistent revenue generation, contributing significantly to overall market dynamics.

Sector Dominance

The Magnificent Seven's ability to dominate and influence trends within their respective sectors, often shaping the direction of entire industries.

Tech Titans

Technology companies within the Magnificent Seven known for their significant impact on the technology sector and broader economy.

Value Preservation

The Magnificent Seven's ability to preserve shareholder value through strategic decisions and effective management, contributing to long-term investor confidence.



General Trading Terms


ADA

A blockchain platform for the development of decentralized applications and smart contracts.

ADR

The average price range a stock experiences within a specific period, often used to gauge volatility.

AH

Trades that occur after the regular market hours, typically between 4:00 PM and 8:00 PM Eastern Time.

AMM

A decentralized finance (DeFi) algorithmic trading protocol that provides liquidity to decentralized exchanges.

AON

An order that must be executed in its entirety, or not at all.

ATH

The highest historical price reached by a financial asset.

ATL

The lowest historical price reached by a financial asset.

ATM

An option where the strike price is equal to the current market price of the underlying asset.

AUD

The official currency of Australia.

Aussie

Refers to the currency pair involving the Australian Dollar and the U.S. Dollar.

BBL

A quick way to inform others that you will be back later.

B/O

A significant price movement above a certain level of resistance or below a level of support.

BPR

The amount of capital required to open and maintain a particular options position.

BRB

A quick way to inform others that you will be right back.

BTC

The first and most well-known cryptocurrency, often referred to as digital gold.

BTD

A strategy of purchasing an asset when its price experiences a temporary decline.

Cable

Refers to the currency pair involving the British Pound and the U.S. Dollar.

CAD

The official currency of Canada.

Carry

A trading strategy that involves borrowing in a currency with a low-interest rate and investing in a currency with a higher interest rate.

CBOE

The largest options exchange in the U.S., facilitating the trading of options contracts.

CC

A strategy where an investor holds a long position in an asset and sells a call option on the same asset to generate income.

CHF

The official currency of Switzerland.

CP

A brokerage firm providing trading services for equities and options.

DAO

An organization represented by rules encoded as a computer program that is transparent, controlled by the organization members, and not influenced by a central government.

DAS

A trading platform/software used for day trading.

DD

Research and analysis conducted before making an investment decision.

DeFi

A financial system built on blockchain technology that aims to recreate and improve upon traditional financial systems.

DEX

A cryptocurrency exchange that operates without a central authority or intermediary.

DITM

An option with a strike price significantly favorable compared to the current market price of the underlying asset.

D/R

Stocks with the highest average daily price range, indicating higher volatility.

DYOR

Encourages individuals to conduct their own thorough research before making investment decisions.

EOD

The closing time of a trading session.

E/R

The public release of a company's financial performance, including revenue and profit, usually on a quarterly or annual basis.

ETH

A blockchain platform enabling the creation of decentralized applications and smart contracts.

EUR

The official currency of the Eurozone.

FA

Analyzing a security's intrinsic value by examining related economic, financial, and other qualitative and quantitative factors.

FOMO

The fear that others are making profitable investments and one might miss out on potential gains.

FTR

A trading strategy that involves selling after a rapid price increase.

FUD

Negative information or rumors spread to create fear and uncertainty in the market.

FWIW

Used to qualify or emphasize a statement, often when providing information.

FX

The global marketplace for trading national currencies against one another.

FYI

Used to inform someone about a piece of information.

GBP

The official currency of the United Kingdom.

GL

Wishing someone success or good fortune.

G/R

Indicates a stock that was initially above the prior day’s close but has dropped below it.

Green

Indicates an increase in price or account value.

GTFO

A slang expression urging someone to leave or expressing that someone has left.

HF

Wishing someone an enjoyable experience.

HOD

The highest price reached by a security during a particular trading day.

HODL

A term used in the cryptocurrency community to encourage holding onto assets despite market volatility.

IB

A popular brokerage firm providing online trading services.

ICO

A fundraising method for new cryptocurrency projects, similar to an initial public offering (IPO) in the stock market.

ICYMI

Used to draw attention to something important that the reader may have missed.

IDK

Indicates uncertainty or lack of knowledge.

IIRC

Indicates that the following statement is based on the speaker's memory and may not be entirely accurate.

IMHO / IMO

Indicates a personal opinion on a matter.

IOW

Used to rephrase or clarify a statement.

ITM

An option with intrinsic value, meaning the option's strike price is favorable compared to the current market price of the underlying asset.

IV

A measure of the market's expectations for the future volatility of an underlying asset, derived from option prices.

JPY

The official currency of Japan.

Kiwi

Refers to the currency pair involving the New Zealand Dollar and the U.S. Dollar.

KYC

A process used by financial institutions to verify the identity of their customers.

L2

Provides detailed market data, including the best bid and ask prices, for a particular security.

LBB

The lower boundary in a Bollinger Bands chart, indicating potential oversold conditions.

L/F

Refers to stocks issued with a low number of shares, leading to higher volatility.

LITM

Holding a long position in an option that is in the money.

LOD

The lowest price reached by a security during a particular trading day.

LOL

An expression used to convey laughter or amusement.

Loonie

Refers to the currency pair involving the U.S. Dollar and the Canadian Dollar.

LOTM

Holding a long position in an option that is out of the money.

Low Float

Stocks with a limited number of shares available for trading, often resulting in price volatility.

MCP

The midpoint between the national best bid and national best offer for an option.

MM

A financial institution or individual that facilitates the buying and selling of financial instruments.

MOC

An order to buy or sell a security at the closing price, typically entered near the close of the trading day.

NFT

A unique digital asset, often representing ownership of digital or physical items.

NZD

The official currency of New Zealand.

OEX

Options based on the S&P 100 Index.

OI

The total number of outstanding options contracts for a particular security.

OMG

An expression of surprise or shock.

O/N

Refers to positions or trades held overnight.

OTM

An option with no intrinsic value, meaning the option's strike price is not favorable compared to the current market price of the underlying asset.

P2P

A decentralized network where participants interact directly with each other without intermediaries.

Perking Up

Indicates a stock showing signs of upward movement after a period of consolidation.

PH

The final hour of the trading day, often characterized by increased trading activity.

PIP

A standardized unit of movement in the foreign exchange market.

PM

A margin system that bases margin requirements on the overall risk of a portfolio of positions.

POP

The likelihood that a trade will be profitable based on statistical analysis or option pricing models.

PoS

A consensus algorithm used in blockchain networks, where validators are chosen to create new blocks based on the number of coins they hold and are willing to "stake."

PoW

A consensus algorithm used in blockchain networks, where validators (miners) solve complex mathematical problems to validate transactions and create new blocks.

Pre

Trades that occur before the regular market hours, typically between 4:00 AM and 9:30 AM Eastern Time.

PROPS

An informal expression conveying proper acknowledgment or respect.

Red

Indicates that the current price is below the closing price of the previous trading day.

Res

A price level at which a security often faces selling pressure, preventing it from moving higher.

R/G

Indicates a stock that was initially below the prior day’s close but has risen above it.

ROC

A measure of the return generated on invested capital.

ROI

A measure of the profitability of an investment, calculated as the gain or loss relative to the initial investment.

R/R

The ratio of potential profit to potential loss in a trade.

R/S

A corporate action that reduces the number of a company's outstanding shares, increasing the share price proportionally.

SPX

Options based on the S&P 500 Index

S/R

Levels on a chart where the price of an asset might experience a pause in its movement or change direction.

SS or S/S

The sale of a borrowed security with the expectation of buying it back later at a lower price.

SSR

A rule that prevents short selling on a downtick, designed to prevent excessive downward pressure on a stock's price.

STC

Closing out an existing options position by selling the contract.

STD

A strategy where an investor holds a position in both a call and a put option with the same strike price and expiration date.

STO

Opening a position by selling an options contract.

STP

A conditional order to buy or sell an option at a specific price or better.

STT

A strategy where an investor holds a position in both a call and a put option with different strike prices but the same expiration date.

Sup

A price level at which a security often faces buying interest, preventing it from moving lower.

SV

A measure of how the implied volatility of options varies with different strike prices.

T+1

The settlement date for securities transactions that occur on a trade date.

T+2

The settlement date for most securities transactions, occurring two business days after the trade date.

T+3

The settlement date for certain securities transactions, occurring three business days after the trade date.

TA

The analysis of historical price and volume data to forecast future price movements.

TIA

Expressing gratitude for anticipated assistance or information.

TOS

A trading platform owned by TD Ameritrade.

TTM

The remaining time until an options contract expires.

TTYL

A casual way of saying goodbye with the intention of talking again in the future.

TY

Expressing gratitude or appreciation.

UBB

The upper boundary in a Bollinger Bands chart, indicating potential overbought conditions.

USD

The official currency of the United States.

VIX

The CBOE Volatility Index, which measures market expectations for future volatility.

WITM

A warrant where the current market price is higher than the exercise (strike) price.

WOTM

A warrant where the current market price is lower than the exercise (strike) price.

WTB

A trading strategy involving writing options and using the premium received to buy other options.

XSP

Options based on the Mini S&P 500 Index.

XYZ

Used to represent an unknown or generic stock in examples or discussions.

Yen

Refers to the currency pair involving the U.S. Dollar and the Japanese Yen.

Yen

Refers to the currency pair involving the U.S. Dollar and the Japanese Yen.

YW

A polite response to someone expressing gratitude.