08Glossary

Glossary

Every options and protocol term used in the app, in one plain sentence each.

The words you'll meet in Strike, in plain language. Across the app, a dotted underline marks a term: hover, focus or tap it for the same definition.

Options

Option: A contract that gives its buyer the right to buy (a call) or sell (a put) a stock at a set price until a set date.
Covered call: You hold the stock and sell the right to buy it from you at the strike: you get paid now and give up gains above the strike.
Cash-secured put: You set cash aside and sell the right to sell you the stock at the strike: you get paid now and may end up buying the stock at the strike if it falls below.
Strike: The stock price an option is written at: a call pays its buyer above it, a put pays below it.
Premium: The price an option buyer pays up front; in Strike it goes to the vault's depositors, in USDG.
Expiry: When the option ends and is settled; Strike's weekly options expire at the US market close, usually on Friday.
Series: One week's batch of identical options (same stock, strike, expiry and type) that a vault sells.
Intrinsic value: What the option would pay if it expired right now: how far the stock is past the strike, or zero.
Fair value: The option's price from the Black-Scholes formula, given the stock price, strike, time left and volatility.

Greeks: Delta, gamma, vega and theta: standard measures of how an option's price reacts to the stock, volatility and time.
Delta: How much the option's price moves for a $1 move in the stock, from 0 to 1; roughly the chance it ends up paying out.
Gamma: How fast delta changes as the stock price moves.
Vega: How much the option's price changes when volatility moves by one percentage point.
Theta: How much value the option loses per day as expiry gets closer, everything else equal.
Implied volatility: How much the stock is expected to move in a year, as a percentage; higher volatility makes options cost more.
Spot buffer: How far the stock can move, as a percentage of today's price, before the option starts paying out.

Epoch: One week in a vault's life: a new option series is listed, sold, then settled at expiry.
Tenor: How long an option runs, from listing to expiry.
Mandate: A vault's fixed rules (delta range, minimum premium, size and tenor) written into the contract; any proposal outside them is rejected.
Agent: A program (often AI) registered on-chain that proposes each week's strike for a vault, within its mandate.
Bond: USDG an agent locks up to be allowed to propose; it is what gets slashed when the agent breaks the rules.
Slash: A penalty taken from an agent's bond when the contract rejects its proposal, paid to the vault's depositors.
Anchored: A record whose fingerprint (its keccak256 hash) the agent committed on-chain when it ran, so anyone can check the published copy was not changed afterwards.

Stock token: A token on Robinhood Chain that tracks one share of a US stock, such as TSLA.
USDG: Global Dollar, a US-dollar stablecoin issued by Paxos; Strike takes deposits, pays premiums and settles in it.
Multiplier (ERC-8056): The stock token's adjustment for splits and dividends: one token may stand for more or less than one share.
ERC-8004: An on-chain identity standard for AI agents: each agent gets an ID that anyone can look up and rate.