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Quadruple Witching Month

The month that that marks the expiration of any four classes of option contracts. This month, the last month in…

Quadruple Witching Day

The day on which any four classes of option contracts (stock index futures, stock index options, stock options and single…

Paper Profit

It refers to unrealized capital profits in an open position in options or futures (or generally in an investment portfolio).…

Paper Loss

It refers to unrealized capital losses in an open position in options or futures (or generally in an investment portfolio).…

Paper Gain

It refers to unrealized capital gains in an open position in options or futures (or generally in an investment portfolio).…

Naked Short Selling

Trades that involve selling a financial instrument without first borrowing the instrument or insuring that it already exists, as would…

90-10 Strategy

A multiperiod option purchase strategy that is designed to avoid large losses in any single investment period by committing 10%…

Keep It Simple Stupid

The language of derivatives (such as delta, DV01, vega, gamma, notionals, vol-vol, fugit, etc) may be hard and confusing to…

IIC

An abbreviation for inflation-indexed cap; an inflation derivative that pays out if inflation (as measured by percentage increase in the…

Immediate Historical Volatility

The volatility value which is realized during the period immediately preceding the date of forecast. This period is equal to…