A complex option trading strategy (originally a box) that involves selling a bull call spread and a corresponding bear put…
A clause in a law, contract, agreement, etc, that limits or reverses a payment or profit distribution for particular reasons.…
A variance-covariance matrix decomposition technique that involves taking random sample from a multivariate normal distribution. In other words, it refers…
An option trading strategy which combines uncapped profit potential with a capped risk. Therefore, it suits times when volatility is…
A variant on a bear ratio spread. It is a bearish put option strategy which involves buying at-the-money or mildly…
A payoff (of some derivative instrument) whose amount is a convex function of the value of the underlying instrument. Generally,…
A physical asset such as base metals, precious metals, crude oil, natural gas, heating oil, gasoline, wheat, rice, livestock, and…
An acronym for short-term interest rate option. By definition, it is an interest rate option in which the underlying is...
A short-term (usually 30-day) option on a futures contract whereby the option expires before its underlying futures reaches maturity. If…
A barrier option that knocks in or out after the underlying spends a preset amount of time above or below…