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What is a teeny?

Discussion in 'Options' started by Jay Hattler, Jan 26, 2016.

  1. Jay Hattler

    Jay Hattler Well-Known Member

    I am hearing this expression for the first time. I thought it was DOTM puts, but a recent video with Dan Harvey made it think it may be something else. Could someone please confirm or clarify? And if it is DOTM puts, I am not sure if the 'teeny' is the price or the delta.

  2. Avi

    Avi Member

    Teeny refers to a very low delta(2 to 5 or so) that you put on as an insurance and also it helps flatten the T + 0 line.
  3. tradingtom

    tradingtom New Member

    Avi is correct. Teeny was market maker slang for a sixteenth, which used to be the smallest tick increment in options trading before the market was decimalized.
    Another term for a very low delta OTM option is a "unit".

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