Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Fun Stuff – Options Jargon You Never Saw Before

From ---

Anyone who has taken a look at options knows the jargon can be discouraging. Below are several terms you may not have heard before, and definitions you definitely have not ever seen.


Butterfly spread - a ranch or farm owned by a butterfly, moth or other winged insect.

Contango - a dance competition in which contestants are incarcerated.

Hedge ratio - the portion of a yard taken up by hedges compared to the total lawn area.

Currency swap - a transaction in which one's wallet is removed during a robbery.

Margin - substitute for the butterfly spread, also called oleo.

Time decay - the fashion season as defined by designed Donna Karan.

CME - abbreviation used by supervising brokers when they need to speak with subordinates.

Call away - a sign placed on a broker's desk while on a break.

Double witching - condition of a divorced man contending with an ex-wife and ex-mother-in-law.

Short call condor - a condor whose plan does not allow rollover minutes.

Exercise limit - the maximum daily treadmill time a broker is able to withstand.

Present value - the amount a loved one spends on a birthday gift.

Floor broker - the bottom level, or most broke a trader can be from losing on options trades.

Short selling - activity in the undergarments department of Sears.

Forced liquidation - see water boarding.

Fungibility - one's tolerance for the taste of mushrooms.

Return if unchanged - instructions from a dermatologist if prescription does not cure a rash.