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OPTION - an option is a contract giving the right to buy or sell 100 shares of stock within a specific time period at a predetermined price.

• CALL OPTION - gives the investor the right to buy 100 shares of stock at a specified price.
  
  
• COVERED CALL OPTION - a call option in which you already own the underlying stock.
  
  
• PUT OPTION - gives the investor the right to sell 100 shares.
  
  
• UNCOVERED CALL OPTION - a call option in which you do not already own the underlying stock.

OPERATING EARNINGS - amount of profits left after subtracting the cost of goods sold and marketing, administrative and general costs from sales. Also called - (EBITDA), which stands for Earnings Before Interest, Taxes, Depreciation, and Amortization.

OVER THE COUNTER STOCKS - stocks that are not traded in a physical stock exchange but rather via telecommunications and computer terminals. Stocks traded on the Nasdaq are referred to as over the counter stocks.