Spread: A unit of measure used in quoting yields, changes in yields or differences between yields. One bps is equal to 0.01%, or one one-hundredth of a percent of yield and 100 bps equals 1%.
Price-to-Earnings Ratio: Current share price of a stock divided by its earnings per share.
S&P 500 Index: An unmanaged index of 500 common stocks primarily traded on the New York Stock Exchange, weighted by market capitalization. Index performance includes the reinvestment of dividends and capital gains.
Alpha: A measure of performance on a risk-adjusted basis. Alpha takes the volatility (price risk) of a fund and compares its risk-adjusted performance to a benchmark index. The excess return of the fund relative to the return of the benchmark is a fund’s alpha.
Options: A type of derivative that gives the buyer of the contract the possibility to buy or sell the underlying asset, depending on if it is a call or a put.
Basis Points (bps): A unit of measure used in quoting yields, changes in yields or differences between yields. One basis point is equal to 0.01%, or one one-hundredth of a percent of yield and 100 basis points equals 1%.
Nasdaq 100 Index: A basket of the 100 largest, most actively traded U.S companies listed on the Nasdaq stock exchange. The ticker of the index is NDX.
Russell 2000 Index: It tracks the performance of roughly 2,000 of the smallest publicly traded companies in the U.S.