# Glossary

### American-Style Optionβ

An option that can be exercised any time up to and including the expiration date.

### Askβ

Price at which an option or stock is offered for sale

### At-the-Money (ATM)β

Option's strike price equal to the underlying asset's market price.

### Bidβ

Price at which an option or stock is available for purchase

### Black-Scholes Modelβ

Model used to calculate European-style options prices

### Break-Even Pointβ

Price at which an option position neither gains nor loses value

### Butterfly Spreadβ

Options strategy with limited risk and profit potential

### Calendar Spreadβ

Options strategy involving options with same strike price but different expiration dates

### Call Optionβ

Contract giving the right to buy an asset at a specified price

### Collarβ

Options strategy to limit risk and potential profit

### Covered Callβ

Options strategy involving a long position and selling a call option

### Deltaβ

Measure of an option's price sensitivity to the underlying asset's price

### European-Style Optionβ

Option that can only be exercised on its expiration date

### Extrinsic Valueβ

Portion of option's price attributed to factors other than intrinsic value

### Gammaβ

Measure of the rate of change of an option's delta

### Greeksβ

Measures of risk in options pricing

### Implied Volatilityβ

Measure of expected volatility of the underlying asset

### In Range (IR)β

When the underlying asset's market price is between the Panoption's lower and upper price range

### In-the-Money (ITM)β

Option with strike price favorable relative to the underlying asset's market price

### Intrinsic Valueβ

Value of an option if exercised immediately

### Iron Condorβ

Options strategy involving selling out-of-the-money calls and puts

### Long positionβ

a long position in a financial instrument means the holder of the position owns a positive amount of the instrument.

### Marginβ

The amount of money or collateral that an investor must deposit with a broker to cover potential losses on an options position.

### Naked Optionβ

Selling option without owning the underlying

### Notional Value of an Optionβ

Theoretical value of the underlying asset represented by an option

### Option chainβ

A list of options available for a specific underlying asset

### Out of Range (OOR)β

When the underlying asset's market price is above tjhe Panoption's upper price range or below the Panoption's lower price range

### Out of the Moneyβ

An option with no intrinsic value

### Panoptionβ

A perpetual, oracle-less, decentralized, option based on Uniswap V3.

### Perpetual Optionsβ

Options with no expiration date

### Premiumβ

The price paid by the buyer of an option to the seller.

### Price Oracles in Blockchainsβ

External data providers for blockchain-based smart contracts

### Put Optionβ

A contract that gives the holder the right, but not the obligation, to sell an underlying asset at a specified price (strike price)

### Range (Uniswap V3)β

The range where users provide liquidity

### Short Positionβ

Strategy betting on a decline in an asset's price

### Streaming Premiaβ

The way Panption sellers collect fees

### Thetaβ

Measure of an option's price sensitivity to time decay

### Volatility Smileβ

Implied volatility pattern across options with different strike prices