Blue chip shares

Blue Chip Shares
Blue Chip shares refer to well established, large multinational firms. Blue chip shares primarily refer to companies listed on the FTSE 100 share index.

Blue chip shares: Shares in quality, stable companies that have paid regular dividends in both good and bad years.

Blue chip shares are often regarded as less risky that those of smaller companies, but there are plenty of examples of blue chips performing extremely badly.

So, in other words, blue chip shares are more liquid than unquoted companies.
See also: Online share dealing service Stockmarket Centre ...

So a share which fluctuates 5% on either side on daily basis is said to have more volatility than let's say a stable blue chip shares whose fluctuation is more benign at 2-3%. Volatility affects calls and puts alike.

See also: Blue Chip, Stock selection, Expense, Values, Illiquid