Since I switched to ITerm from Terminal, I missed being able to jump between words using the alt key and corresponding left and right keys.

To change this, you have to go to iTerm's preferences then "Profiles" tab, select "Keys".   Change the keyboard shortcut   " ⌥← "  (option+left arrow)  action to   "Send Escape Sequence".   Beside the "Esc+" label, input the letter "b".

Do the same for ⌥→ instead use the ""Esc+" and the letter "f"

スクリーンショット 2014-12-22 16.56.19

Why this work?

Strangely in terminal, jumping between words was marked with the "Escape key", very odd choice seeing, it stopped my flow each time I had to jump between a word, to make matters worse it jumps one word at a time and reverts to input mode.