Options Glossary: H

Hedge / hedged position

A position established with the specific intent of protecting an existing position. For example, an owner of common stock may buy a put option to hedge against a possible stock price decline.

Historic volatility

A measure of actual stock price changes over a specific period of time. See also Standard deviation.

Holder

Any person who has made an opening purchase transaction, call or put, and has that position in a brokerage account.

Horizontal spread

An option strategy which generally involves the purchase of a farther-term option (Call or put) and the writing of an equal number of nearer-term options of the same type and strike price. Example: buying 1 XYZ May 60 call (Far-term portion of the spread) and writing 1 XYZ March 60 call (Near-term portion of the spread). See also Calendar spread.

Talk to Options Professionals

Questions about anything options-related?
Call or chat with an options
professional now.

Call 1-888-OPTIONS
Speak to an Options Professional!
Chat with Options Professionals

Questions about anything options-related?
Chat with an options professional now.

Start Live Chat
Email Options Professionals

Questions about anything options-related?
Email an options professional now.

options@theocc.com
Register with OIC
Personalized options education
  • Absolutely free, and your info is private
  • Stop and return to classes anytime
  • Curriculums that fit your needs
Upcoming Seminars & Events