Glossary
annualized basis A calculated rate of return based on a holding period of one full year; the rate is divided by the holding period (in months) and then multiplied by 12.
antistraddle rules Tax regulations that affect the long-term favorable tax treatment of stock when an unqualified in-the-money covered call is written before the long-term period has been reached.
assignment Exercise against a seller’s short position, performed on the basis of procedures developed by the Options Clearing Corporation and brokerage firms.
at the money An option whose strike is identical to the underlying stock’s value.
automatic exercise A form of exercise on the day of expiration, in which the Options Clearing Corporation initiates exercise of in-the-money ...
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