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Ratio Call Spread

An option trading strategy which involves selling a number of in-the-money calls at a set strike and simultaneously buying a...

Interest Rate Cap

An OTC interest rate derivative, or simply a contract on an interest rate whereby the seller (or the writer) pays...

Worst-of-Two Option

An exotic option (specifically a type of an either-or option or an alternative option) whose payoff is based on the...

Ratio Vertical Spread

A delta-neutral options strategy that involves more option short positions than option long positions on the same underlying and in...

Ratio Bear Spread

A variant on a ratio put spread , and a strategy similar to the ratio bull spread in almost all...

Collared Forward

It is a forward contract in which one counterparty (the long) buys an out-of-the-money put option and sells an out-of-the-money...

Multi-Leg Options Order

An option order whereby a trader can simultaneously buy and sell a number of different options that usually could only...

Zero-Coupon Call

A financial instrument (particularly a fixed income instrument) that combines the features of a zero-coupon bond and a call bond....

Privilege

An old-dated term for an option; by definition, a privilege/ option is a derivative contract granting its owner the right, but...

Call CAPS

A CAPS “option” in which a maximum level is placed on the payout in the form of a specified points...