The action which an investor takes by entering into an interest rate swap in order to offset an exposure to…
The liquidation of an option position while at the same time taking an essentially equivalent position in an option with…
The process of locking in a futures trader’s roll-over costs (i.e., hedging the trader’s roll risk) involving going long (buying)…
An option trading strategy that involves the combination of stocks or futures with options to create a delta-neutral position. A...
In general, any type of option in which the premium is reduced due to the sale of another option. In...
An option trading strategy which involves selling a far-month call option and buying a near-month call in order to benefit…
A calendar straddle that is designed to profit as the underlying is expected to break out in either direction. This…
A neutral option trading strategy that is based on four legs involving selling a low strike put (one short put),…
An option trading strategy which involves buying between two and four straddles for one or more expiration months. The straddle…
A basket default swap which sets a maximum payout for each defaulted reference entity and a maximum aggregate payout over...