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Cacall

A call option on a call option. It gives the holder the right, without the obligation, to purchase a call...

Basis Narrowing

The basis can develop a narrowing trend when the futures price of an asset/ commodity increases faster than the sport...

Basis Widening

The basis can develop a widening trend when the spot price of an asset/ commodity increases faster than the futures...

Naked Put

A put option which confers on the holder the right to buy the underlying stock at a price below the...

Naked Option

An option whose buyer or seller has no position in the underlying security. It is a short call or short...

IRDV01 of a CDS

A metric that captures the dollar change in the value of a credit default swap (CDS), or a CDS position,...

Weighted Average Rate Option

An average rate option in which the weighting of a given periodical price or rate (daily, weekly, monthly, ..) is...

Weighted Collar

An equity risk reversal in which the amounts covered by the cap leg and the floor leg are not equal....

Wash Sale

An illegal transaction which involves the sale of a security such as stock, bonds, or options, at a loss and...

Weighted Put/Call Ratio

A revised version of the put/call ratio that uses the dollar value of traded options instead of the volume statistics....