Internet
catalyst
What does catalyst mean?
A specific upcoming event — earnings, a product launch, an FDA decision — expected to trigger a big price move, and the reason a trader times a bet.
"Earnings is the catalyst; I'm holding calls into it."
Origin
Standard trading term; heavily used in WSB DD posts to justify timing.
Frequently asked questions
What is a catalyst in stocks?
A specific upcoming event — like earnings, a product launch, or an FDA decision — expected to trigger a sharp price move in a stock.
How do traders use catalysts?
Traders time their bets around a catalyst, often buying options to expire just after the event so they profit if it moves the price the expected way.
Is a catalyst always good news?
No. A catalyst just means a price-moving event; it can send a stock up or down depending on the outcome.
Study it as flashcards or scroll it in Vocabulary Flow — saved to your collection.
