Overview

straddle

Return to overview »

Results | All related links for this item | 1-10 of 25 results for:


Refine by type

Refine by product

 

breaking a leg

Overview page. Subjects: Financial Institutions and Services.

Closing out one part of an arbitrage or spread transaction, while leaving the other part open. See also leg; straddle.

See overview in Oxford Index

butterfly

Overview page. Subjects: Financial Institutions and Services.

A strategy used by dealers in traded options. It involves simultaneously purchasing and selling call or put options at different exercise prices. A butterfly is most profitable when the...

See overview in Oxford Index

butterfly spread

Overview page. Subjects: Economics.

An option strategy that possesses both limited risk and restricted profit potential (cf. iron butterfly). It is produced either by combining a bull spread and a bear spread on the ...

See overview in Oxford Index

calendar spread

Overview page. Subjects: Economics.

An options strategy that involves the sale of an earlier expiry option and purchase of a later expiry option on the same underlying.

See overview in Oxford Index

chooser option

Overview page. Subjects: Economics.

An option in which the holder has the freedom to decide, up to a specified point before expiry, whether it is a put or a call option.

See overview in Oxford Index

combination

Overview page. Subjects: Economics.

An option strategy which involves both put and call options, usually on different terms. There are three basic kinds: straddles which involve only buying options, ratio spreads which...

See overview in Oxford Index

combo

Overview page. Subjects: Economics.

An option strategy involving a written call together with a purchased put at a lower strike price (cf. risk reversal; straddle; strangle). Also known as splitting the strike.

A...

See overview in Oxford Index

condor

Overview page. Subjects: Economics.

(CO).

An option combination designed to take a view on future volatility without having a directional view on the underlying (cf. vertical spread). It is similar in approach to a...

See overview in Oxford Index

diagonal straddle calendar spread

Overview page. Subjects: Economics.

A complex option strategy based on relative volatility and the term structure of volatility and the directional view on the underlying over the spread period. It involves selling a straddle...

See overview in Oxford Index

high-low floating rate note

Overview page. Subjects: Economics.

(high-low FRN).

Floating rate note with a large margin up to a cap point on the reference rate, after which the note effectively becomes a reverse floating rate note. The ...

See overview in Oxford Index