Options Trading Abbreviations Glossary: Every Term You Need to Know
Complete reference of options trading abbreviations and shorthand used on brokerages, forums, and trading communities, with clear definitions.
Walk into any options trading forum and you'll see a wall of abbreviations. Here's your decoder ring—organized by category so you can find what you need quickly.
Order Types
| Abbreviation | Full Term | Meaning |
BTO
Buy to Open
Open a new long position
STO
Sell to Open
Open a new short position
BTC
Buy to Close
Close an existing short position
STC
Sell to Close
Close an existing long position
GTC
Good 'Til Cancelled
Order stays active until filled or cancelled
DAY
Day Order
Order expires at end of trading day
IOC
Immediate or Cancel
Fill immediately or cancel unfilled portion
AON
All or None
Fill entire order or nothing
Position Descriptions
Abbreviation
Full Term
Meaning
ITM
In the Money
Option has intrinsic value
OTM
Out of the Money
Option has no intrinsic value
ATM
At the Money
Strike price equals stock price
DITM
Deep In the Money
Far ITM, high delta
DOTM
Deep Out of the Money
Far OTM, low delta
NTM
Near the Money
Close to ATM
The Greeks
Abbreviation
What It Measures
Δ (Delta)
Price sensitivity to stock movement ($1 move)
Θ (Theta)
Daily time decay (how much value lost per day)
Γ (Gamma)
Rate of change of delta
V (Vega)
Sensitivity to implied volatility changes
ρ (Rho)
Sensitivity to interest rate changes
Strategy Abbreviations
Abbreviation
Strategy
CC
Covered Call
CSP
Cash-Secured Put
IC
Iron Condor
IB
Iron Butterfly
BPS
Bull Put Spread
BCS
Bear Call Spread
PMCC
Poor Man's Covered Call (diagonal call spread)
BWB
Broken Wing Butterfly
Volatility Terms
Abbreviation
Full Term
Meaning
IV
Implied Volatility
Market's expected price movement
HV
Historical Volatility
Actual past price movement
IVR
IV Rank
Current IV relative to past year's range
IVP
IV Percentile
% of days IV was lower than current
VIX
CBOE Volatility Index
Market's "fear gauge"
Time and Expiration
Abbreviation
Full Term
Meaning
DTE
Days to Expiration
Trading days until option expires
0DTE
Zero Days to Expiration
Expires today
LEAPS
Long-Term Equity Anticipation Securities
Options expiring 1+ years out
FD
Far-Dated / "Financial Derivatives"
Slang for risky short-dated OTM options
EXP
Expiration
The date the option contract ends
OpEx
Options Expiration
Same as above, common in market commentary
Account and Trading Terms
Abbreviation
Full Term
Meaning
PDT
Pattern Day Trader
4+ day trades in 5 days, requires $25K
BP
Buying Power
Available funds for new trades
BPR
Buying Power Reduction
Capital reserved for a position
ROC
Return on Capital
Profit divided by capital used
POP
Probability of Profit
Likelihood the trade is profitable
P&L
Profit and Loss
Your trade result
R/R
Risk/Reward
Ratio of potential loss to potential gain
NBBO
National Best Bid and Offer
Best available prices across exchanges
Forum and Community Slang
Term
Meaning
Wheeling
Running the wheel strategy (sell puts, get assigned, sell calls)
Bagholding
Stuck holding a losing stock position
Theta gang
Traders who primarily sell options for time decay
Scalping
Taking small, quick profits
| YOLO | Putting a large portion of account in one trade |
How to Use This Glossary
Bookmark this page. When you encounter an unfamiliar abbreviation in your broker's interface, on Reddit, or in a trading community, come back here. OptionsPilot's interface uses standard abbreviations in its analysis—knowing these terms helps you read strike comparisons and return projections more efficiently.
Understanding the language is the first step to understanding the game.
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