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Short Call Ladder

A vertical spread strategy which benefits from both high and low volatilities. However, the strategy is naturally bullish. In essence,…

Short Call Spread

An option trading strategy that is constructed by selling a call option at a given strike price and buying a…

Cash-or-Nothing Put

A type of option in which the payoff is determined in one of two distinct values: a specified fixed price…

Calendar Effect

A securities market seasonal phenomenon wherein the stocks tend to perform differently at different times of a calendar year. More…

Call Iron Condor

An iron condor, generally, involves buying or selling four options at four different exercise prices. When an investor buys the calls…

Long Calendar Strangle

A calendar strangle that is designed to profit as the underlying is believed to stay stagnant over a specific period…

Live-Out Option

A variation on a knock-out option (KO option) which is very deep in-the-money when it knocks out. A knock-out option...

Cross Sensitivity Measures

A set of greeks that measure the sensitivity of an option's value (also a warrant's value) to one of the...

Mini VIX Futures

An index derivative product, initially launched in 2009, which represents a smaller than standard-sized futures contract that is priced at…

Monte Carlo Method

A sophisticated analytical method which was initially introduced to find solutions for random-behavior problems by calculating approximate probabilities of specific…