Physical market: A marketplace in which a physical commodity or product is traded, as opposed to a futures market where contracts to deliver at some future date are traded and physical delivery of the product may or may not take place.
Prompt Date: The date on which the buyer of an option will buy or sell the underlying commodity (or futures contract) if the option is exercised.
Price-earnings (P/E) ratio: The current market price of the stock divided by some measure of earnings per share.
Put Call Parity: The equilibrium relationship between premiums of call and put options of the same strike and expiry.
Put/Call Ratio: Calculated by dividing the number of put options traded by the number of call options traded for a particular asset, the put/call ratio offers Explanation into expectations of the options market.
Quotation: The actual price or the bid or ask price of either cash commodities or futures contracts.
Rally: An upward movement of prices following a decline; the opposite of a reaction.
Risk/Reward Ratio: The relationship between the probability of loss and profit. This ratio is often used as a basis for trade selection or comparison.