Bid, Ask, Cover, Assignment, Roll

Bid price - a price which a buyer is willing to pay for an option or a stock.

Ask Price - a price at which a seller is willing to sell an option or a stock.

Contingent order - an order that will be executed only when the price of the underlying security for an option order falls to a certain level.

Cover (covering short position) - covering short position is buying an option back, which was previously sold short. The short position closes by this transaction.

Assignment - Assignment is a receipt of an exercise notice by an option writer (seller) which obligates him/her to purchase in the case of a put, or sell in the case of a call, the underlying security at a specified strike price.

Automatic Exercise - Automatic Exercise, exercises an option for the option owner by the Options Clearing Corporation automatically if an in-the-money option is expiring.

Roll Forward (Roll Out, Rolling) - buying option with longer-term expiration and closing out the near-term expiration options.

Roll Up - buying options at a higher strike price and closing out lower strike options.