Bear Call Spread: A strategy in which a trader sells a lower strike call and buys a higher strike call to create a trade with limited profit and limited risk. A fall in the price of the underlying increases the value of the spread. Net credit transaction; Maximum loss = difference between the strike prices less credit; Maximum gain = credit; requires margin.

Bull: An investor who believes that a market is rising or is expected to rise.

Bull Call Spread: A strategy in which a trader buys a lower strike call and sells a higher strike call to create a trade with limited profit and limited risk. A rise in the price of the underlying increases the value of the spread. Net debit transaction; Maximum loss = debit; Maximum gain = difference between strike prices less the debit; no margin.

Uncovered Call Writing: A short call option position in which the writer does not own an equivalent position in the underlying security represented by his option contracts.

Uncovered call option writing: A short call option position in which the writer does not own an equivalent position in the underlying security represented by his option contracts.

Synthetic Short Call: A short stock position combined with a short put of the same series as that call.

Synthetic Long Call: A long stock position combined with a long put of the same series as that call.

Ratio Call Spread: A bearish or stable strategy in which a trader buys 2 higher strike calls and sell1 lower strike call. This strategy offers limited risk and unlimited profit potential.

Premium: The price of an option contract, determined in the competitive marketplace, which the buyer of the option pays to the option writer for the rights conveyed by the option contract. Often this word is used to mean the same as time value.

Opening Call: A period at the opening of a futures market in which the price for each contract is established by outcry.

Margin Call: A call from a broker signaling the need for a trader to deposit additional money into a margin account to maintain a trade.

Call Premium: The amount a call option costs.