A variable interest rate on one or two legs of a swap. This rate changes or floats every time the...
A deep out-of-the-money option which is sold, because it is very much out-of-the-money, at low price. Such an option costs...
A tool that measures the amount of change in the delta of a derivative (most often an option) in response to a unit change in...
In swap transactions, payment netting represents the difference between the two leg payments on the same resetting date. In other...
A tool which measures market state in terms of the dollar-weighted volumes traded, i.e., whether it is oversold or overbought....
An iron condor, generally, involves buying or selling four options at four different exercise prices. When an investor sells the…
An option trading strategy which involves selling a far-month call option and buying a near-month call in order to benefit...
It stands for banking on overall stability, which is one of the numerous names for . By definition, it is...
A call ratio backspread which involves selling lower strike call options and buying a bigger number of higher strike calls...
An option trading strategy that is executed by selling a number of out of the money call options exceeding the…