Friday, April 8, 2011

Abbreviations used in Covered Call and PUT posts.

AY: Annualized Yield
CAGR: Compound Annualized Growth Rate.
CACAGR: Call away CAGR. Stock price compound growth rate required before stock is price exceeds strike price.

CC: Covered Call
CD: Current Delta.   I treat the "Delta" as a positive whole number.
CSP: Cash Secured PUT
EA:  Exposure Amount (PUT strike price * # shares)
SEA: Stististical Exposure Amount (EA * Delta * .01).  
WSEA:  SEA when option written.
CSEA:  Current SEA (EA * CD * .01)
IV:  Implied Volatility
RAY: Realized Annual Yield. Used when a PUT is closed.
WD: Delta of option on date written. Delta is always shown as positive number between 1 and 100.

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