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Naked Put Writing

An options trading strategy which involves the selling of put options without shorting the shares of the underlying stock. This...

DvolgaDvol

A third-order greek that measures the sensitivity of the option vomma (volga) in response to a change in volatility. It...

DvommaDvol

A third-order greek that measures the sensitivity of the option vomma (volga) in response to a change in volatility. It...

Ultima

A third-order greek that measures the sensitivity of the option vomma (volga) in response to a change in volatility. It...

Forward CDS

A credit default swap (CDS) which comes into life at some future start date, provided that no default event occurs...

Accrual Option

An option on an option which is made up of a strip of European digital or binary options. In this...

Stealth

The percentage difference between a barrier option's strike and a set trigger (knock-in or knock-out barrier). This tool is used...

Adjustable Strike Cap

An option in which the cap level is based on the last rate set for the underlying floating rate (LIBOR)....

Drift Rate

The average increase per unit of time in a stochastic variable. Typically, the drift cannot be detected amid all the...

Rollover Date

The date on which the periodic payment terms and conditions of a swap agreement are established. In other words, the...