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The Saber Course

Glossary

Every term in plain English. Named Saber concepts (the …) carry their canonical definition.

assignmentLesson 1.3
a seller being selected to fulfill the obligation they were paid for: buying 100 shares at the strike on a short put, or delivering 100 shares at the strike on a short call.
assignment riskLesson 3.1
the risk that a short option is assigned and you must buy (put) or sell (call) the shares, approximated by delta.
at the money (ATM)Lesson 1.4
a contract whose strike sits roughly at the current stock price.
Attractiveness ScoreLesson 4.5
the screener's legacy "Score" column, a 0–100 blend of yield, liquidity, and the probability of expiring out of the money.
bid-ask spreadLesson 7.3
the gap between the highest price buyers are bidding and the lowest price sellers are asking; the cost of crossing the market, paid on both entry and exit.
blind spotLesson 7.1
a real risk a trade carries that the Saber Score does not measure, because the score grades only the shape of one out-of-the-money income trade.
blockLesson 8.2
a single institutional-size options print negotiated and executed in one piece.
callLesson 1.1
an option that is the right to buy 100 shares of the underlying at the strike price.
called awayLesson 2.2
having your shares bought out from under you at the strike when a covered call you sold is assigned.
cash-secured putLesson 2.1
a short put backed by the full strike-times-100 in reserved cash, obligating you to buy 100 shares at the strike if assigned, in exchange for a premium collected up front.
contractLesson 1.1
a binding agreement between two parties about a future transaction at a price fixed today, valid only until expiration.
contract multiplierLesson 1.1
the fixed 100 shares that one standard US equity option controls, so a contract costs the quoted premium times 100.
covered callLesson 2.2
an agreement to sell someone the right to buy 100 shares you already own at a set strike before expiration, in exchange for a premium collected up front.
credit spreadLesson 2.4
selling one option and buying a cheaper same-type option at a further strike so a net credit comes in, with the bought leg bounding the loss.
cycleLesson 4.1
one complete sell-to-expiration round of a premium-selling trade; TYE annualizes by assuming the trade repeats floor(365 ÷ DTE) cycles a year.
defined-riskLesson 2.4
a position whose worst-case loss is known and bounded before the trade is placed.
deltaLesson 3.1
the standard option greek read two ways: textbook, roughly how much an option's price moves per $1 move in the stock; from the seller's chair, the market's rough odds the option finishes in the money — your implied assignment odds.
drawdownLesson 7.6
how far an account's value falls from a prior level.
DTELesson 1.1
days to expiration; the number of days left on an option contract's clock.
early assignmentLesson 7.4
assignment of a short American-style option on a day before expiration, most likely when the option is in the money and its remaining time value is small.
earnings reportLesson 7.2
a company's scheduled quarterly release of results, a binary event that can move the stock sharply overnight.
effective basisLesson 2.4
the real per-share cost of assigned stock after subtracting every premium you collected to get there; the strike minus the rent.
ex-dividend dateLesson 7.4
the cutoff date to own a stock and qualify for its upcoming dividend; owning after it does not earn the payout.
exerciseLesson 1.3
a buyer invoking the right their option grants, forcing the trade at the strike: buying 100 shares on a call, selling 100 shares on a put.
expirationLesson 1.1
the date an option contract expires, after which the right is either used or worthless.
gammaLesson 3.3
how fast an option's delta (and therefore its assignment odds) changes when the underlying moves; largest near the strike and growing as expiration approaches.
gamma fragilityLesson 5.3
the tendency of a short option's decay to reverse fastest when gamma is high and expiration is near, so a calm position can turn into a loss in a single move.
gapLesson 7.2
an overnight jump in a stock's price that opens well above or below the prior close, potentially straight through a strike.
implied volatility (IV)Lesson 3.4
the market's priced forecast of how much a stock is expected to move, backed out of the option premium itself; higher IV means a fatter premium for the same strike and DTE.
in the money (ITM)Lesson 1.4
a contract that exercising would profit right now: a put with the stock below its strike, a call with the stock above it.
in-app RemoraAILesson 6.7
Remora's built-in chat assistant, reached by the floating "Hey RemoraAI" button; it screens, checks IV and earnings, reads your portfolio and flow, and pulls quotes and technicals, but carries no Saber tools on any tier.
intrinsic valueLesson 1.4
what exercising a contract is worth this instant, the strike-to-stock gap in your favor times 100, and zero for any OTM contract.
IV percentileLesson 3.5
the share of the past year's trading days that closed with implied volatility below today's.
IV rankLesson 3.5
where today's implied volatility sits between its own 52-week low and high, scaled 0 at the low to 100 at the high.
Live TapeLesson 8.1
Remora's in-app tab (marketing name "Live Flow") showing real tick-level options prints as they cross, gated to the Ultimate bracket plus the active trial.
max lossLesson 2.4
for a credit spread, the distance between the two strikes less the credit collected; the capital the trade actually secures.
MCP compact suffixLesson 6.2
the comma-separated `| Saber: …` string the MCP server appends to a screener or spread row, listing Saber, TYE, τ, κ, ψ, and σ with its capitalized label.
moneynessLesson 1.4
where the stock price sits relative to the strike, the relationship that decides whether exercising a contract is worth anything right now.
NBBOLesson 8.2
the National Best Bid and Offer: the best publicly posted price to buy (the ask/offer) and to sell (the bid) an option at a given instant.
Net FlowLesson 8.1
call premium minus put premium across a name; positive and green means more premium traded in calls than puts, negative and red the reverse.
obligationLesson 1.2
the binding duty an option seller accepts in exchange for the premium; unlike the buyer's right, it carries no choice to walk away.
open interestLesson 7.3
the number of a given option contract currently outstanding (held open) in the market.
optionLesson 1.1
a contract giving its buyer the right to buy or sell a stock at a fixed price for a fixed time, in exchange for a premium paid to the seller.
option seller (writer)Lesson 1.2
a trader who sells (writes) an option, collecting the premium up front and taking on the obligation the contract carries.
Options Flow (aggregate feed)Lesson 8.1
a per-ticker tally of options premium that traded across the market, shown on the Market tab as call and put premium totals and their net; available to every paid tier and the active trial.
out of the money (OTM)Lesson 1.4
a contract that exercising would waste right now: a put with the stock above its strike, a call with the stock below it; its premium is all time value.
oversizingLesson 2.5
selling more of a position, or more correlated positions on one underlying, than your total secured capital can safely absorb, so a single move hits every copy at once.
premiumLesson 1.1
the price of an option contract, quoted per share, that the buyer pays and the seller collects.
premium sellerLesson 0.1
a trader who sells options to collect the premium and takes on the obligation that comes with it (assignment on a short put, delivery on a short call).
printLesson 8.1
a single executed options trade that crosses the tape, contributing Volume × Price × 100 of premium to the aggregate feed.
putLesson 1.1
an option that is the right to sell 100 shares of the underlying at the strike price.
Saber ScoreLesson 0.1
a single 0–100 rank for an out-of-the-money income trade, blending its efficiency, stability, volatility quality, and yield into one number.
secured capitalLesson 7.6
the cash you reserve to buy the shares if a short put is assigned (strike × 100), the true denominator for sizing a position.
secured cashLesson 2.1
the strike price times 100 set aside to back a cash-secured put, held as collateral until the put expires or you are assigned.
short vegaLesson 3.4
the position of an option seller, who gains on paper when implied volatility falls and loses on paper when it rises, even if the stock does not move.
strike priceLesson 1.1
the fixed price at which the option's future buy or sell transaction happens, regardless of where the stock trades.
sweepLesson 8.2
one order split across multiple exchanges in a fraction of a second, all on the same side, executed for speed.
T-bill / cash-carryLesson 5.6
a short-term U.S. government bill, the market's baseline cash yield; the risk-free interest the collateral securing a put earns underneath the option premium.
the Durability TestLesson 4.2
prefer theta that survives the next move; reject premium that lives or dies on gamma and short-dated time.
the Entry-Score TrapLesson 6.5
a portfolio Saber Score is frozen at entry with σ pinned to Fair and never re-checks moneyness, so an ITM position still shows its entry shape.
the five surfacesLesson 6.2
the five places Remora renders a trade's Saber numbers, each showing a different subset of fields: the screener/spreads columns, the Trade Finder card, the wheel pill, the morning briefing line, and the MCP compact suffix.
the greeksLesson 0.1
the standard option risk inputs (delta, theta, gamma, vega) plus IV context that every broker displays; raw measurements, not decisions.
the Honest DenominatorLesson 2.1
Always divide income by the full capital you actually secured — the strike-secured cash — never a smaller number that flatters the yield.
the Inventory PrincipleLesson 2.3
Assignment is inventory you agreed to buy at a price you chose, not a failure to avoid.
the MCP serverLesson 6.7
the external connector installed as the `heyremora` package that lets AI clients like Claude Desktop or Cursor call Remora's 40+ tools directly, including the Saber tools (screen_by_saber, get_saber, the Saber section of get_option_quote); requires a Professional+ API key, and returns Saber numbers only on an Ultimate/Founding key.
the No-Trade VetoLesson 6.3
the standing right to place nothing; a valid checklist output — often the best one — invoked whenever any single risk check fails.
the Pre-Trade ChecklistLesson 6.3
the fixed go/no-go ritual run before every order, turning the Doctrine into a decision.
the Quality-Vol RuleLesson 5.4
only sell implied volatility the market is overpaying for — Rich or Fair, never Thin.
the Real-Risk RuleLesson 4.3
every dollar of premium must be paid for the assignment (delta) risk it actually carries.
the Roll/Assign Decision TreeLesson 6.5
the fixed procedure for a tested position — roll for a credit, close, or take assignment as inventory.
the Saber DoctrineLesson 0.2
Saber's four commitments — sell quality vol, get paid for real risk, prize durability over drama, let the number decide.
the Saber OathLesson 0.3
The short creed a reader earns the right to speak, marking the shift from picking by gut to trading by the stat line.
the Saber SortLesson 6.1
the ritual that replaces the nonexistent preset: run a screen and sort by the Saber column, or ask MCP's screen_by_saber.
the Secured-Capital Sizing RuleLesson 6.3
size every position against the full cash a trade secures, never against the premium it pays.
the Three ChairsLesson 0.3
The three readers seated in every lesson — the beginner, the premium seller, and the risk-off allocator.
the Two ScoresLesson 4.5
the legacy Score column and the Saber Score are unrelated 0–100 numbers; never read one as the other.
the Two-Rate RuleLesson 5.6
App surfaces compute τ with a fixed 3.5% cash-carry while the /saber calculator uses the live T-bill; never mix the two bases in one example.
the Weekly ReviewLesson 6.6
the recurring ritual of auditing every open position and the briefing's Saber spotlight to decide what to roll, close, or leave.
the wheelLesson 2.3
the repeating income loop that sells a cash-secured put, takes assignment into 100 shares, sells covered calls against them, and returns to cash when called away, collecting premium at every station.
thetaLesson 3.2
the daily erosion of an option's time value; the amount of premium the contract loses to the passage of one day with everything else held still — the buyer's daily bill and the seller's daily paycheck.
Theta Efficiency (κ)Lesson 5.2
income earned per unit of assignment (delta) risk; higher means better paid for the risk taken.
Theta Stability (ψ)Lesson 5.3
how durable a trade's income is against gamma fragility, penalized near expiration.
time valueLesson 1.4
the part of a premium above intrinsic value: the price of the time and probability left in the contract, and the entire premium of an OTM contract.
Total Secured Yield (τ)Lesson 5.6
TYE plus the cash-carry (risk-free) yield the strike-secured cash already earns; a plain percentage-point addition, not part of the Saber Score composite and not a screener column.
TYELesson 0.1
Theta Yield Equivalent; the option premium annualized as a percentage of the strike-secured cash the trade reserves, a gross rental yield on that capital.
underlyingLesson 1.1
the stock an option is written on; the shares that would change hands if the option is used.
vegaLesson 3.4
the option greek measuring how much an option's price changes when implied volatility changes; not one of Saber's inputs.
volatility risk premium (VRP)Lesson 5.4
the tendency of options to price more volatility than later shows up; the concept σ is built to capture.
Volatility Sale Quality (σ)Lesson 5.4
a 0–100 score, labeled Rich/Fair/Thin, for how rich the implied volatility you're selling is; built from IV rank and IV percentile.
volumeLesson 7.3
the number of contracts of a given option traded during the session.