Call - Short for Call Options.

Called Away - The process in which a call option writer is obligated to surrender the underlying stock to the option buyer at a price equal to the strike price of the call option.

Calendar Spread - A neutral/bullish option strategy in which a short-term option is sold and a longer-term option is bought, both having the same striking price. Either puts or calls may be used. A calendar combination is a strategy that consists of a call calendar spread and a put calendar spread at the same time. The striking price of the calls would be higher than the striking price of the puts. A calendar straddle would consist of selling a near-term straddle and buying a longer-term straddle, both with the same striking price.

Calendar Straddle or Combination-see Calendar Spread.

Call Options -Options which gives the holder the right to buy the underlying security at a specified price for a certain, fixed period of time. Read All About Call Options .

Capitalization - The total amount of securities issued by a corporation. This may include: bonds, debentures, preferred stock, common stock and surplus.

CBOE - The Chicago Board Options Exchange; the first national exchange to trade listed stock options.

CBOE VIX - See VIX.

Class of Options - Option contracts of the same type and style that covers the same underlying asset.

Close - Period at the end of a trading day where final prices for the day are calculated.

Closing Order - The buying back or selling off of an option for which an option trader has the opposite position. An option trader who writes a call option will execute a closing order by "buying to close" that call option. An option trader who bought a call option will execute a closing order by "selling to close" that call option. Types Of Options Orders Explained.

Condor Spread - A complex neutral option strategy that profits from a stock trading within a predetermined range. Read All About Condor Spreads Here!

Contango - A term originating from the oil market. This is when farther month implied volatility is higher than nearer month implied volatility. This is indicative of a normal market condition.

Contingent Order - An order to buy stock and sell a covered call option that is given as one order to the trading desk of a brokerage firm. Also called a "net order." This is a "not held" order. Types Of Options Orders Explained.

Correction - When a stock drops in price temporarily before rebounding later.

Contract Size - The amount of underlying asset covered by the option contract. This is generally 100. If an option is quoted for $2.50, then one contract would cost $2.50 x 100 = $250 and would cover 100 shares.

Contract Neutral Hedging - A static hedging technique involving buying 1 put option or selling 1 call option for every 1 share held. Read More About Contract Neutral Hedging Here!

Contrary Opinion - The belief opposite that of the general public and/or Wall Street. It is most significant at major market turning points. An overall consensus of opinion, whether bullish or bearish, usually marks an extreme. An investor taking a contrary view will usually benefit in time.

Conversion - The transformation of a long stock position into a position which is short the stock using options, without closing the original long stock position, through the use of synthetic positions. Read more about Conversions.

Consolidation - When stocks starts going sideways after a significant rise as investors start selling some of their holdings to take profit.

Cover - To buy back as a closing transaction an option that was initially written.

Covered Call Write - A strategy in which one writes call options while simultaneously owning an equal number of shares of the underlying stock. Read All About Covered Calls Here!

Covered Put Write - a strategy in which one sells put options and simultaneously is short an equal number of shares of the underlying security. Learn Everything About The Covered Put.

Covered Straddle Write - the term used to describe the strategy in which an investor owns the underlying security and also writes a straddle on that security. This is not really a covered position.

Covered Warrant - the term used for structured warrants that works almost exactly the same as call options and put options. Read about the Differences Between Warrants & Options.

Credit - Money received in an account. A credit transaction is one in which the net sale proceeds are larger than the net buy proceeds (cost), thereby bringing money into the account. There are many credit option strategies. Read All About Debit And Credit Spreads Here!

Credit Spread- A Credit Spread position is an option spread in which the net sale proceeds are larger than the net buy proceeds (cost), thereby bringing money into the account. Read more about Credit Spreads.