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Stock Index Contingent Option

A variation on a vanilla option in which the holder's payout depends, or is contingent, not only on the performance...

Stock Pinning

A situation that occurs when the underlying stock of an option settles near or at its strike price (exercise price)...

Stock Option

An option in which the underlying is the common stock of a company. This option gives the holder (the buyer)...

Reload Option

An employee stock option (ESO) that confers on the holder (the optionee) supplementary options after the original option is exercised....

Open Short Contract

In connection with futures contracts, it is a short position in a contract that is still not offset or closed. As...

Open Long Contract

In connection with futures contracts, it is a long position in a contract that is still not offset or closed....

TRS

An abbreviation for total return swap; a type of credit derivative in which the two counterparties agree to exchange the...

Vanilla Total Return Swap

The most basic version of a total return swap (TRS). By definition, it is a type of credit derivative in...

Rebate Strangle Option

A pair of options (a put and a call) with non-standard rebate and payout features. The strike price of each...

Reverse Break-Even

The point at which a short option or option spread executed at a credit breaks even (it produces neither profit...