Steamroom: Terminology

Click on each term for more detailed explanations.

Team Sang Lucci & Wall St. Jesus avatar
Written by Team Sang Lucci & Wall St. Jesus
Updated over a week ago

Welcome to the Steamroom!

We know it can be overwhelming to try and understand all the new lingo and terms. Here is a master glossary where you can click on each term you want to learn more about.

  • Flow - a running ledger of the most important transactions occurring in a particular option.

  • Steam - Steam is flow that’s starting to really heat up.

  • Wiseguys - Wiseguys are the pros in the know, whether they’re fund managers, traders within a broker-dealer, or some other institutional player.

  • Sweeps - Sweeps are aggressive orders filled across multiple exchanges and more likely to be a directional bet on the underlying stock.

  • Sweepers - Sweepers are those who sweep frequently.

  • Multi-sweeps - Multi-sweeps are what they sound like: when multiple sweeps happen in the same name within a close enough timeframe to be relevant to each other.

  • Blocks - A block is often negotiated and can be tied to stock, and is less likely to be a directional bet.

  • Splits - When a Block is too large to fill at any one liquidity provider, it gets “split” into smaller orders executed across different exchanges and liquidity pools.

  • Sharpies - Sharpies are a reference to institutional market participants.

  • Riff raff - About “Retail Traders”: uninformed traders who get steered into traps and bubbles by smart, institutional market participants who know how to leverage news and retail trader emotions to their advantage.

  • Bazooka Joe - Jesus coined the term Bazooka Joe for the traders who come blasting in with a huge order.

  • Roll-up/rolling - Rolling an option from a time series to another time series is basically closing current and buying the different option expiration. You can also do it by buying a different strike or both.

  • Max pain - Typically, Max Pain is indicated by finding the put/call strike with the largest Open Interest (OI).

  • Sentiment - Simply the collective feeling of the market.

  • Getting sprayed - This simply means that a stock or option is being bought repeatedly within a short timeframe. Such orders lead to further delta hedging in the underlying, which helps create the tradeable momentum.

  • Getting tattooed - See above.

  • 9er / Niner - A Demark trading strategy helps a trader evaluate the current state of the trend and the likely exhaustion point. 9ers are potential exhaustion points.

  • Stickiness - Stickiness in the market usually leads to less directional price action.

  • Gamma - Gamma is the change in delta per unit of change in underlying for your options book. Here we are specifically talking about market makers’ options positions. The more options they are long (others have sold to them), the more gamma exposure, GEX, the market makers have.


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