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American-Style Option​

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


Price at which an option or stock is offered for sale

At-the-Money (ATM)​

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


Price at which an option or stock is available for purchase

Black-Scholes Model​

Model used to calculate European-style options prices

Break-Even Point​

Price at which an option position neither gains nor loses value

Butterfly Spread​

Options strategy with limited risk and profit potential

Calendar Spread​

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

Call Option​

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


Options strategy to limit risk and potential profit

Covered Call​

Options strategy involving a long position and selling a call option


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

European-Style Option​

Option that can only be exercised on its expiration date

Extrinsic Value​

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


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


Measures of risk in options pricing

Implied Volatility​

Measure of expected volatility of the underlying asset

In Range (IR)​

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

In-the-Money (ITM)​

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

Intrinsic Value​

Value of an option if exercised immediately

Iron Condor​

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

Long position​

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


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

Naked Option​

Selling option without owning the underlying

Notional Value of an Option​

Theoretical value of the underlying asset represented by an option

Option chain​

A list of options available for a specific underlying asset

Out of Range (OOR)​

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 Money​

An option with no intrinsic value


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

Perpetual Options​

Options with no expiration date


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

Price Oracles in Blockchains​

External data providers for blockchain-based smart contracts

Put Option​

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)​

The range where users provide liquidity

Short Position​

Strategy betting on a decline in an asset's price

Streaming Premia​

The way Panption sellers collect fees


Measure of an option's price sensitivity to time decay

Volatility Smile​

Implied volatility pattern across options with different strike prices