Glossary
Options trading terminology.
The cash-secured put and options terms that matter, in plain English, plus the StratosIQ terms you will see across the platform.
StratosIQ Proprietary
- StratosIQ Score
- A single 0 to 10 number summarising how a cash-secured put setup ranks across premium efficiency, probability of expiring out of the money, implied volatility rank, liquidity, and risk buffer. Higher scores rank better under the current methodology. The score ranks setups; it is not financial advice. Learn more →
- ShieldIQ
- StratosIQ's proprietary downside risk model. ShieldIQ estimates a Risk Floor for every setup and assigns a buffer status of FORTIFIED, SECURE, TIGHT, or EXPOSED. It runs two separate calibrations: one for Patrol's continuous drift risk and one for Strike's earnings-event gap risk. Learn more →
- Risk Floor
- ShieldIQ's quantitative estimate of realistic downside in the underlying over the life of the trade. The distance between the current price and the Risk Floor, measured against the strike, drives the buffer status. A larger buffer means more room before a setup is threatened.
- Buffer Status (FORTIFIED / SECURE / TIGHT / EXPOSED)
- The four ShieldIQ labels describing how much downside cushion a setup has before the strike is breached. FORTIFIED is the widest buffer, SECURE is comfortable, TIGHT sits just inside the floor, and EXPOSED means the strike is already above the floor. Thresholds differ for Patrol and Strike.
- Patrol
- StratosIQ's non-earnings cash-secured put screener. Patrol scans stocks with no upcoming earnings event for lower-volatility, drift-based put-selling setups scored for steady income. It is delivered daily and ranked separately from Strike so you can match setups to your risk profile. Learn more →
- Strike
- StratosIQ's earnings cash-secured put screener. Strike scans stocks approaching earnings, where elevated implied volatility produces significantly higher premiums, then scores the setups through ShieldIQ's earnings-gap calibration. It is delivered daily and ranked separately from Patrol. Learn more →
Options Fundamentals
- Cash-Secured Put
- An options strategy where you sell a put option and reserve enough cash to buy 100 shares at the strike price if assigned. You collect the premium upfront in exchange for the obligation to purchase the stock should it fall below the strike at expiry. Learn more →
- Strike Price
- The fixed price at which the put seller is obligated to buy 100 shares of the underlying if the option is assigned. For cash-secured puts, the strike sets both the capital you reserve and the level below which the position moves into assignment territory. Learn more →
- Premium
- The income the put seller receives upfront for taking on the obligation to buy the underlying at the strike. Premium is the core return of a cash-secured put: if the option expires out of the money, the seller keeps the full premium collected.
- Days to Expiry (DTE)
- The number of calendar days remaining until an option contract expires. DTE shapes how quickly time value decays and how far the underlying can move before expiry. StratosIQ factors DTE into every score and screens within defined expiry windows.
- Assignment
- What happens when the put buyer exercises their right, obligating the seller to buy 100 shares at the strike price. For a cash-secured put, the reserved cash covers the purchase. Assignment is the outcome the collected premium compensates you for taking on. Learn more →
The Greeks
- Delta
- A measure of how much an option's price moves for a one-dollar move in the underlying. For put sellers, the absolute delta also approximates the chance the option finishes in the money. StratosIQ screens within a defined delta range to control assignment risk. Learn more →
- Theta
- The rate at which an option loses time value each day as expiry approaches. Theta works in the put seller's favour: all else equal, a sold option decays toward zero, letting the seller retain premium. StratosIQ accounts for decay in its scoring. Learn more →
- Vega
- A measure of how much an option's price changes for a one-point change in implied volatility. Higher vega means premium is more sensitive to volatility shifts, which matters most around earnings. StratosIQ's Strike screener targets the elevated-volatility windows where vega is highest. Learn more →
- Gamma
- The rate at which an option's delta changes as the underlying moves. High gamma means delta, and therefore assignment risk, can shift quickly near the strike close to expiry. Understanding gamma helps put sellers anticipate how fast a position's risk profile can change. Learn more →
Risk Metrics
- IV Rank
- Where current implied volatility sits relative to its own range over the past year, expressed 0 to 100. A high IV Rank means options are richly priced versus their own history, which favours premium sellers. StratosIQ uses IV Rank as a core scoring input. Learn more →
- Probability of Profit (POP)
- An estimate of the likelihood a setup finishes profitable, derived primarily from delta and the premium collected. For a cash-secured put, POP approximates the chance the option expires out of the money so the seller keeps the premium. It is a probability, not a guarantee. Learn more →
- Buying Power Reduction (BPR)
- The capital your broker sets aside when you open a position. For a true cash-secured put, the BPR equals the full strike price times 100, since the cash is reserved to cover assignment. BPR is the denominator for return-on-capital comparisons across setups.
- Return on Capital
- The premium collected expressed as a percentage of the capital reserved, usually annualised so setups with different expiries can be compared on equal footing. StratosIQ uses annualised return on capital as its premium-efficiency input and always labels it Return.
See these terms in action
Every StratosIQ setup carries a score, a ShieldIQ buffer status, and the metrics defined here. From $8.99/month.
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