Key Phrases

In the stock market when you are talking to brokers, mentors and investors you will hear phrases like 'In The Money' and 'Strike Price'. I have listed below some Key Phrases and their definitions.

STRIKE PRICE - what the stock was bought or sold at

AT THE MONEY

- is used when the stock price and strike price are the same

IN THE MONEY - is when the strike price is above the stock price

OUT OF THE MONEY - is when the strike price is below the stock price

CALL OPTION - used when you anticipate the stock moving up

PUT OPTION - used when you anticipate the stock going down

MOVING AVERAGE - difference between support and resistance

BID, ASK PRICES - sellers get the bid price, buyers get the ask price. Just remember whichever one you want you get the other.