Stock Exchange Jargon


Stock Exchange Jargon

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H

Hedge

Fancy Way to Say: Offset, Protect No, we're not talking bushes or shrubs. Instead, the term hedge is generally used to mean offsetting a position. It can also refer to protecting a profit. For example, if one is long 100 shares of XYZ but is wary of potential disaster, she can 'hedge' her position by buying a put against IBM. This insurance is used in case her feeling is right and XYZ does go into a coma.

Hit the Bid

Fancy Way to Say: Sell Since the bid price represents the price at which an investor is willing to buy, by telling a broker/trader to hit the bid one is instructing them to sell. In other words, hit that buyer, take out that buyer's stock.

I

In the Money

Fancy Way to Say: Profitable In the case of a call option, when the price of the security exceeds the strike price. For a put option, when the price of the security is below the strike price.

K

Kaylack

Fancy Way to Say: KLA-Tencor Just a nickname for KLA-Tencor based on its ticker symbol, KLAC.

Kaylick

Fancy Way to Say: Kulicke & Soffa Just a nickname for Kulicke & Soffa based on its ticker symbol, KLIC.

L

LEAPS (Long Term Equity Anticipation Securities)

Fancy Way to Say: Long term options Regular options contracts tend to go out only as far as nine months. For the investor which wants to make an options play on a security which goes out a year or longer she uses LEAPS.

Leg Out

Fancy Way to Say: Partially close a position There are several options strategies which involve the purchase or sale of multiple, different contracts. The contracts can differ in strike price, expiration date, or both. Some such strategies include: straddles, strangles, combinations, spreads. When one legs out of a position she closes one side of the multiple contract position while leaving the other open

Life Raft

Fancy Way to Say: The Rak man is short! More of a little joke than anything, but whenever I get short a stock I know other people are trading I always shout out "the life raft is afloat." This let's everyone know I am in and that my powers of stopping downward momentum, which I can't control, will probably manifest themselves on this stock. The worst is when some of my buddies also call out the same thing on the same stock. The more life rafts that are in, the more strength to the stock.

Long

Fancy Way to Say: Owning stock When you own shares of a company you are said to be long the stock. If you plan on buying the stock you are looking to get long, or get long.

M

Mister Softee

Fancy Way to Say: Microsoft Just a cute little nickname for Microsoft based on its ticker symbol, MSFT.


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