Glossary
Plain definitions of the terms used across Vanterra.
Options basics#
Call. The right to buy a share at the strike. A call's buyer profits if the price rises above the strike.
Put. The right to sell a share at the strike. A put's buyer profits if the price falls below the strike.
Strike. The price at which an option can be exercised.
Expiry. The date a dated option stops existing. Perpetual options have none.
Premium. The price paid for an option by the buyer to the writer.
Writer. The side that sells an option and takes on the obligation.
Assignment. When a written option is exercised against the writer.
Intrinsic value. What an option would be worth if exercised right now.
Implied volatility (IV). The volatility the option price implies. It usually rises into earnings and falls after, known as IV crush.
Greeks. Measures of how an option's value moves with price, time and volatility.
Strategies#
Covered call. A share plus a written call on it. See Covered call.
Cash-secured put. A written put backed by strike × size in USDC. See Cash-secured put.
Collar. A share plus a written call and a bought put. See Collar.
Defined-risk spread. A combination of options whose maximum loss is known at entry.
Ladder. One position split across strikes and expiries. See Ladder builder.
Vanterra terms#
Autopilot vault. A one-tap strategy vault that writes options for depositors. See Vaults overview.
Epoch. The period for which a vault's parameters are fixed.
Premium streaming. Releasing premium linearly, per second, over an option's life. See Premium streaming.
Funding rate. The continuous payment from buyer to writer on a perpetual option.
Session. Regular hours, pre-market, after-hours or weekend. The chain shows which is active.
Reference price. The price an option is priced against. Its source depends on the session.
Position NFT. The NFT that represents an open option.
Holder tier. Free, Holder, Holder+ or Pro, read from your $VANT balance.
Robinhood Chain. The chain (id 4663) where Vanterra, its stocks and its settlement live.
USDC. The settlement currency for every cash leg.