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Swap Differential Agreement

An interest rate basis swap which entails the exchange or locking in of the spread between a bond or note...

Double Option

A commodity option that gives the holder the right either to buy (call) or sell (put) the underlying asset, but...

Monetizing an Option

An embedded option that is sold by a firm to derivatives dealers in order to realize cash out of it...

SDA

It stands for swap differential agreement; an interest rate basis swap which entails the exchange or locking in of the...

Monetizing Collar

A combination of a zero-cost collar with a margin loan. This structure allows an investor to take most of the...

Monetizing Equity Collar

A combination of a zero-cost collar (an equity collar, or a combination of an equity put and an equity call)...

Long Synthetic Option

A long position in a synthetic option. In other words, a position whose payoff (and generally risk-and-reward profile) replicates that...

Long Gut Iron Butterfly

A gut iron butterfly which is established by buying one call at the lowest exercise price, selling one call and...

Long Condor

A neutral (risk-limited and reward-limited) option trading strategy which builds on the long butterfly strategy, and whereby a long butterfly...

Long Horizontal Straddle

A calendar straddle (horizontal straddle) that is designed to profit as the underlying is believed to stay stagnant over a...