Market Vibe:
steady • extreme vol
Mock
Real
Learn the language of trading. Master these terms to level up your game.
Call Option
A contract giving the buyer the right, but not the obligation, to buy 100 shares at a specific price (strike) by a certain date (expiration).
Example:
Buy AAPL $150 Call expiring Jan 15
Put Option
A contract giving the buyer the right, but not the obligation, to sell 100 shares at a specific price (strike) by a certain date (expiration).
Example:
Buy SPY $400 Put for downside protection
Strike Price
The price at which an option holder can buy (call) or sell (put) the underlying stock.
Premium
The price paid for an option contract. This is what you pay to buy the option.
Implied Volatility (IV)
The market's expectation of future price movement. Higher IV = more expensive options.
POP (Probability of Profit)
The statistical chance that a trade will be profitable at expiration based on current prices and volatility.
Example:
72% POP on this put credit spread
Credit Spread
An options strategy where you sell one option and buy another, collecting a net credit (money upfront).
Example:
Sell $150P, Buy $145P for $1.20 credit
Iron Condor
A neutral strategy combining a put spread and call spread to profit from low volatility.
Example:
145/140P, 160/165C Iron Condor
Covered Call
Selling call options against stock you own to generate income.
Example:
Own 100 AAPL, sell 1 AAPL call
Pair Trade
A market-neutral strategy that involves going long one stock and short another related stock.
Example:
Long BYD, Short TSLA
Delta
How much an option price changes when the stock moves $1. Call delta: 0 to 1, Put delta: -1 to 0.
Example:
0.30 delta = option gains $0.30 if stock rises $1
Theta
Time decay - how much an option loses value each day. Negative for buyers, positive for sellers.
Example:
-$5 theta = lose $5/day from time decay
Vega
Sensitivity to implied volatility changes. How much option value changes with 1% IV move.
Gamma
The rate of change of delta. How fast delta changes as stock price moves.
Vibe Score
Stocks and Vibes' proprietary 0-100 sentiment score combining social sentiment, options flow, and technical indicators.
Support
A price level where a stock tends to find buying interest and bounce higher.
Example:
AAPL has strong support at $150
Resistance
A price level where a stock tends to find selling pressure and reverse lower.
Example:
SPY facing resistance at $450
RSI (Relative Strength Index)
Momentum indicator measuring overbought (>70) or oversold (<30) conditions.
Moving Average
Average price over X days. Common: 20-day, 50-day, 200-day. Acts as dynamic support/resistance.
Volume
Number of shares traded. High volume confirms moves, low volume suggests weak conviction.
Market Cap
Total value of all shares. Share price × shares outstanding.
Example:
AAPL market cap: $3 trillion
P/E Ratio
Price to Earnings ratio. Stock price divided by earnings per share. Measures valuation.
Pro Tips for New Traders
📚 Start with paper trading
Practice with virtual money before risking real capital🎯 Define your risk
Never risk more than 1-2% of your account per trade📊 Learn the Greeks
Understanding Delta, Theta, and Vega is crucial for options🔄 Start with spreads
Credit spreads offer defined risk and good probability of profit