PACIFIC EXCHANGE (PCX): The PCX or Pacific Exchange is one of four U.S. exchanges that trade equity options and is located in San Francisco, California. 

PARITY: The term "parity" refers to equality, a term used to express an option when its total premium is equal to its natural value. 

PARTIAL FILL: This is an order that is partly executed and filled at a specific price due to the total number of shares of a security not being bought or sold at that specific price.

PAYABLE DATE: The dividend for a stock is paid to the shareholders on this date. 

PHILADELPHIA STOCK EXCHANGE (PHLX): The PHLX is located in Philadelphia, Pennsylvania and is one of four U.S. exchanges that trade equity options. 

PIN RISK: A risk that the writer of an options or futures contract faces when he/she is short an option position that, once expires, the underlying asset is now equal to or pinned to that short option's strike price. 

PLUS TICK or UP TICK: This is a price description referring to the trading of a security at a price higher than the prior sale price for the same security. 

POINT: This is the minimum change in the processing of an asset's price. For equities such as stock or options, a point means $1. 

POSITION LIMIT: The maximum number allowed for an open option contract to have on the same underlying stock.

POSITION TRADING: Establishing a position in an asset and holding it for an extended period of time. 

POSITION: This is the Long or short of an asset in an account.

PREFERRED STOCK: A class of ownership in a stock or option with a claim on a company's earnings before dividends may be made on the common stock. Preferred stock usually has a dividend that must be paid out before dividends to common stockholders 

PREMIUM: This is the price of an option.

PRIME RATE: This is the lowest interest rate that commercial banks charge to their largest investors.

PUT OPTION: This is an option contract giving the owner the right, but not the obligation, to sell a specific amount of an underlying option at a specified price within a specified time. This is the opposite of a call option.

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