Glossary
Words we use on the desk.
Short definitions in plain language. If you want a fuller walkthrough of a specific article, open it and use Need a hand? to copy a prompt for ChatGPT, Claude, or similar.
68 terms · Click a term for a quick definition overlay
- DisciplineR multiple · risk unit
One risk unit for the session: trading capital times risk_per_trade_pct.
Default example uses risk_per_trade_pct 0.005 (0.5 percent of desk trading capital). Targets are often expressed as multiples of R. Daily stop is often expressed as a multiple of R.
Also see: Notional, Daily loss stop
- Desk toolsAgentic
Robinhood's dedicated account type for agentic trading tools.
Place/cancel via Trading MCP only when agentic_allowed is true. Primary brokerage accounts stay read-only for place/cancel on that path.
Also see: Trading MCP
- Options & Wheelassigned
Being required to buy (or sell) the shares from a short option.
For a short put, assignment means paying strike × 100 and owning the stock. Plan for that before you sell the put.
- Options & Wheelat the money · at-the-money
At the money: strike near the current stock price.
ATM options usually carry more premium and more assignment risk than far OTM strikes. Income desks often prefer OTM short puts with a chosen delta instead.
- Setups & tapeaverage true range
Average True Range: a measure of typical price movement.
Used to size targets and cuts in units of volatility (for example, take-profit near a fraction of 5m ATR). Micro-ATR days often mean noise, not edge.
- Market structurebearish tape
A soft or falling market day, usually with weak indexes.
On this desk, a bear tape often means both SPY and QQQ are red versus the prior close and/or trading below session VWAP. Long stock work stays picky: relative-strength reclaim setups only, or sit. New cash-secured puts can also be skipped when the tape is strongly bearish.
Also see: Bull tape, Regime, VWAP, Relative strength (RS)
- Market structurebid-ask · bid ask spread
The gap between the highest buy price and lowest sell price.
A wide spread makes it expensive to enter and exit. Equity and options desks often skip names when the spread is too wide versus the planned reward.
Also see: Open interest (OI), RVOL
- Market structurebullish tape
A firm or rising market day, usually with strong indexes.
Often SPY and QQQ green versus the prior close and holding above VWAP. Long continuation and late-push ideas are more allowed, still with written gates.
Also see: Bear tape, Regime, Bull-continuation
- Setups & tapebull continuation · Power-hour bull-continuation · power-hour bull-continuation · bull-continuation scan
A long setup that tries to ride strength already in motion, not a bottom-fish.
Power-hour bull-continuation scans look for liquid names still holding above VWAP with healthy RSI and MACD quality into the afternoon. On a bear tape, only the cleanest relative-strength versions clear. No trigger means sit.
Also see: EOD / power hour, Bear tape, VWAP, Relative strength (RS)
- Options & WheelBTC · buy to close · buy-to-close
Buying back a short option to close the position (not Bitcoin).
On the Wheel desk, BTC often means taking profit near ~50% of credit, or closing by a time stop such as ≤21 DTE left. It frees the cash collateral that was locking the short put.
Also see: Cash-secured put (CSP), DTE, OTM
- Options & Wheelshort call · short calls
An option that gains value when the stock rises (for the buyer).
A covered call sells upside against shares you already own. A long call buys upside without owning 100 shares, risking the premium paid.
Also see: Covered call (CC), Long call, Put
- Discipline
Being flat is an active choice, not empty time.
You are allocating to safety when your playbook says wait. Missing a runner that never cleared your rules is not the same as failing.
- Options & WheelCSP · cash-secured put · cash secured put · cash-secured puts
Short put collateralized by cash equal to strike × 100.
You keep the credit if the put expires worthless or you buy it back cheaper. Assignment can turn cash into 100 shares.
Also see: Wheel, Assignment, DTE, Delta, Buy to close (BTC), Premium, Credit, Strike, Collateral
- Setups & tapebroken tape
A session with no persistent side, so structural stops carry little information.
Not the same as fast or down. Triggers include wide opening range versus recent average, many VWAP crosses, extreme short-term ATR, or no side holding VWAP. Full tests live under measurable thresholds.
- Options & Wheelcash collateral
Cash (or shares) reserved to secure a short option.
A cash-secured put locks roughly strike × 100 until you buy to close, expire, or get assigned. That lock is why starter desks limit concurrent short puts.
Also see: Cash-secured put (CSP), Scalp sleeve, Strike
- Options & WheelCC · covered call
Short call against 100 shares you already own.
Often the second step of a Wheel after assignment. Caps upside in exchange for premium.
- Options & Wheelnet credit
Money received when you sell an option (or open a credit structure).
On a cash-secured put, credit is the premium collected up front. Manage rules often buy back near half that credit.
Also see: Premium, Buy to close (BTC), Debit
- Options & Wheelput credit spread · call credit spread
Sell one option and buy another farther OTM for a net credit; risk is defined.
Often used for steady income with less capital lock than a naked cash-secured put. On this desk, multi-leg spreads are an app track, not Trading MCP place yet.
Also see: Debit spread, Iron condor, Cash-secured put (CSP)
- Disciplineinvalidation · structural cut
The price or time where the trade thesis is wrong.
Structural cuts sit beyond a swept extreme, not inside the obvious stop cluster. Time cuts end the idea when the clock says so.
Also see: Liquidity sweep
- Disciplineloss stop
A session loss limit that ends new risk for the day.
Once tagged, disconnect place/cancel if you use automation. Revenge is not a plan.
- Options & Wheelnet debit
Money paid when you buy an option (or open a debit structure).
Long calls and long puts are typically opened for a debit. Your risk is usually limited to what you paid.
- Options & Wheeldebit call spread · debit put spread
Buy one option and sell another for a net debit; loss and win are both capped.
A cheaper way to express direction than a naked long option. Caps the reward as well as the risk.
Also see: Credit spread, Long call, Long put
- Options & Wheeldefensive buy to close · emergency BTC
Buying back a short option early when the mark blows out against you.
A downside control that does not require a second leg. Take a smaller loss now rather than sit into assignment or a deep hole. Different from the usual ~50% profit take.
Also see: Buy to close (BTC), Cash-secured put (CSP), Assignment
- Options & WheelΔ
How much an option's price tends to move when the stock moves $1.
Short puts around 0.20-0.30 delta are a common income target: not lottery far OTM, not deep ITM.
- Options & Wheeldays to expiration
Days to expiration.
Wheel-style desks often prefer roughly 30-45 DTE to open, and manage by about 21 DTE remaining.
- Setups & tapeEOD · power hour · power-hour · Power-hour
Late-session window, often mid-afternoon into the close.
Continuation and late push setups live here on some desks. Fresh ideas after a late cutoff are usually manage-only.
Also see: Bull-continuation, Hard flat, Relative strength (RS)
- Market structureEastern Time · eastern time
Eastern Time: the clock most US equity desk rules use.
Hard flats and opening-range windows on this site are written in ET unless noted otherwise.
- Disciplinefail-closed · failed closed
If required information is missing or a gate fails, place no order.
Examples: broker tools not authenticated, earnings unknown, or a reclaim that never holds. Missing numbers for a measurable gate also fail closed. Sitting is the correct output, not a guess.
Also see: Sit / skip, Trading MCP, State check
- Disciplinefake RR · fake risk to reward
A reward-to-risk ratio that was manufactured rather than measured.
Stop placed to make the math work, target ignored the first obstacle, or target chosen after entry. After fixing those, the desk wants at least 2R at the worse end of the trigger.
Also see: R:R, Mid-reclaim, 1R
- Disciplinefear of missing out
Fear of missing out: chasing because price already moved.
Usually shows up as mid-reclaim entries, size-ups after winners, or trading past your hard flat. The antidote is a written trigger, not more screen time.
Also see: Mid-reclaim, Sit / skip
- Discipline
A clock when you must exit and stop adding risk.
Example: 15:55 ET for afternoon equity scalps, or 11:00 ET for morning OR work. Research can continue. New risk cannot.
- Options & Wheelcondor
A range income structure: short call spread plus short put spread.
Wants the stock to stay quiet. Loses when price makes a big move either way. App / multi-leg track on this desk, not MCP single-leg place.
Also see: Credit spread
- Options & Wheelin the money · in-the-money
In the money: the option already has intrinsic value.
A short put is ITM when the stock is below the strike. That raises assignment risk into shares unless you buy to close first.
Also see: OTM, ATM, Assignment, Buy to close (BTC)
- Options & Wheelimplied volatility
Implied volatility: the market's priced expectation of movement.
Higher IV often means richer option premiums and wider expected swings. Earnings and event weeks can inflate IV and change whether short premium is worth the risk.
- Options & Wheellegged · legging into
When separate option orders fill unevenly, so you do not get the hedge you planned.
Trading MCP places one leg per order. A synthetic spread (short put plus long lower put as two tickets) can leave you naked if only the short fills. True multi-leg tickets in the app usually avoid this.
Also see: Credit spread, Cash-secured put (CSP), Trading MCP
- Setups & tapestop hunt
A quick run through obvious stops to grab resting orders.
Often looks like a wick beyond a prior low or high. Many playbooks buy the reclaim after the sweep, not the mid-range bounce.
Also see: Sweep-reclaim, Opening range (OR)
- Options & Wheelbuy call
Buying a call: upside if the stock rises, risk limited to the premium paid.
No requirement to own 100 shares. Strong-reward tool, not steady income. Many long calls expire worthless when timing is wrong.
Also see: Long put, Debit spread
- Options & Wheelbuy put
Buying a put: pays if the stock falls, risk limited to the premium paid.
Can hedge or express a bearish view without shorting stock. Still not a paycheck: time decay works against the buyer.
Also see: Long call, Debit spread
- Setups & tape
Moving Average Convergence Divergence: trend/momentum from moving averages.
The histogram is a common desk check (for example, requiring it non-negative or improving before a late-day push). Soft MACD is a size-down or skip cue, not a green light by itself.
- Setups & tapemaximum adverse excursion
Maximum adverse excursion: how far price went against you.
Useful for judging whether your cut was realistic. Parking a hard stop inside an obvious sweep zone often inflates MAE.
- Setups & tapemid reclaim
Buying after only a partial reclaim, with poor R:R.
Looks confirmed, but entry is far from the true swept low versus a tight target, or untested lows still sit below. Playbooks skip. A real sweep needs a meaningful undercut, a reclaim within minutes, and volume confirmation. See measurable thresholds.
Also see: Sweep-reclaim, Fake R:R
- Disciplineposition notional · notional band
The dollar size of a stock position (shares × price).
Derive it from written session inputs: trading capital, risk per trade as a fraction of capital (default 0.005 = 0.5% = 1R), and max notional as a fraction (default 0.20 = 20%). Never widen the stop to fit the cap. See measurable thresholds on sizing.
Also see: 1R
- Options & WheelOI · open interest
How many option contracts are still open for that strike and expiry.
Higher open interest usually means easier entry and exit. Thin open interest can mean wide spreads and poor fills.
Also see: Bid-ask spread, Cash-secured put (CSP)
- Setups & tapeOR · opening range
The high/low mapped in the first minutes after the open (often 09:30-09:45 ET).
Used as a structure map for morning scalps. Hard flat clocks often apply later in the morning session.
- Options & Wheelout of the money · out-of-the-money
Out of the money: the option has no intrinsic value yet.
A short put is OTM when the stock is above the strike. Many Wheel manages hope the put expires OTM so collateral frees without assignment.
- Options & Wheelshort put · short puts
An option that gains value when the stock falls (for the buyer).
Selling a put (cash-secured) means you are willing to buy shares at the strike. Buying a put is a bearish or hedge tool with risk limited to the debit paid.
Also see: Cash-secured put (CSP), Long put, Call
- Disciplinereward to risk · reward-to-risk
Reward to risk: how much you hope to make versus how much you risk.
If your entry is far from the invalidation level, and your take-profit is close, R:R is poor even if the story sounds good.
Also see: Take-profit (TP), Cut / invalidation
- Market structure
The broad character of the market that day: trend and volatility.
For continuation, this desk requires both SPY and QQQ beyond the opening-range high, both above VWAP, a 30-minute VWAP hold, and fewer than five SPY VWAP crosses since the open. Full test: measurable thresholds on this site.
Also see: VWAP, Relative strength (RS), Regime D, Bear tape, Bull tape, Chaotic tape
- Setups & tape
A sweep-then-reclaim setup: price grabs stops beyond a level, then holds back above (or below) it.
On this desk, morning Opening Range work often waits for Regime D at the OR high or low. Mid-reclaim chases without a real reclaim are not Regime D. Sweep tests live under measurable thresholds.
Also see: Sweep-reclaim, Opening range (OR), Mid-reclaim
- Market structureRS · relative strength
A name holding up better than the index on a weak day.
On bear days, some desks only allow RS longs (or cash). Chasing green names against a red tape is a common tilt.
- Desk toolsreview before place
Show the order preview, get a human yes, then submit.
Default posture until rules are stable. Auto-execute only with hard caps outside the chat.
- Setups & taperelative strength index
Relative Strength Index: a momentum oscillator, often on a 0-100 scale.
Not the same as relative strength versus an index. Desk notes often watch 5m RSI for extension (for example, skipping when RSI is already stretched on a big day).
Also see: MACD, Relative strength (RS)
- Market structureregular trading hours
Regular trading hours (US equities: typically 09:30-16:00 ET).
Premarket and after-hours have different liquidity and spreads. Many desk rules only allow new risk in RTH.
Also see: ET
- Setups & taperelative volume
Relative volume versus a typical day.
High RVOL means unusual participation. Useful for spotting names that are actually moving, not just flickering.
- Options & Wheelequity sleeve
Buying power kept free for short equity trades while Wheel cash is locked.
A cash-secured put reserves strike × 100. The scalp sleeve is what remains for morning or afternoon equity work so income and scalps do not fight over the same cash.
Also see: Cash-secured put (CSP), Collateral, Notional
- Desk toolssingle leg · one leg
One option order at a time (not a multi-leg spread ticket).
Trading MCP on this desk places single-leg orders. True spreads usually belong in the Robinhood app until multi-leg place is available.
Also see: Trading MCP, Leg risk, Credit spread
- Disciplinesit · skip · sit list
A logged decision to not trade.
Publishable on this site. Empty sessions with clear skip reasons are evidence of process, not failure.
Also see: Sitting on your hands
- Disciplinesit on your hands
Choosing not to trade when conditions do not match your plan.
Cash is allowed. A quiet day with zero trades and zero losses can still be a good day when the tape is wrong for your setup.
Also see: Cash is a position, Regime, Sit / skip
- Options & Wheel
A market where willing-to-own puts are under pressure.
Used for Wheel skips: soft indexes (moving averages, weak closes, elevated VIX) or the underlying itself below its 50-day average. Softness in the name you may be assigned is the real risk.
Also see: Bear tape, Cash-secured put (CSP), Chaotic tape
- Disciplinewin stop
A session profit threshold where you stop adding.
You may manage opens, but you do not invent a second idea to keep playing.
- Disciplinestate sit · tilt
A hard sit when the trader is off, even if the setup looks clean.
Runs before regime. Recovery language, urgency with no screen, size drift, rule shopping, and post-loss immediacy fail the check. A good setup does not clear a bad state.
Also see: Sit / skip, Fail closed
- Options & Wheelstrike price
The fixed price in an option contract where shares would be bought or sold if assigned.
For a short put, assignment means buying 100 shares at the strike. Collateral is usually strike × 100 on a cash book.
Also see: Assignment, Cash-secured put (CSP), Collateral
- Setups & tapesweep reclaim
Price sweeps a level, then reclaims it in your direction.
Entry grammar on the desk often waits for that reclaim with a cut beyond the swept extreme. Mid-reclaim chases are a common skip.
- DisciplineTP · take-profit · take profit
A planned profit exit written before you enter.
Limits or targets you set while calm. Hope is not a take-profit.
- Desk toolsMCP · Model Context Protocol · Robinhood Trading MCP
Robinhood's Model Context Protocol trading interface for desk tools.
Lets connected clients research, scan, and (on Agentic) place or cancel with review. It is a bounded desk tool, not a blank check. On this desk it places single-leg option orders.
Also see: Agentic account, Single-leg, Review → confirm → place
- Market structurevolume-weighted average price
Volume-weighted average price for the session.
A common reference for whether price is trading rich or cheap versus the day's average paid. Many desk rules check price versus VWAP.
- Options & Wheelthe Wheel
CSP → possible assignment into shares → covered call, then repeat.
Income process, not a lottery. Earnings, collateral fit, and tape still gate whether you open a new short put.
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