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Bear Ratio Spread

A variant on a bear put spread, and a strategy similar to the bull ratio spread in almost all aspects...

PoC

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

Jelly Roll

An option trading strategy which involves selling a call and buying a put at the same strike price, both being with a near-month expiration date,...

Greeks

A series of calculations which determine and reflect different profiles of risk exhibited by a stock or asset underlying a derivative in response to changes in...

Greek Alpha

A risk measure for options which is computed by relating an option's theta to its gamma: Alpha = decay/gamma This second-order greek expresses the quality of gamma...

Madonna Option

A variation on maximum and minimum options (best-of and worst-off options) which pays the Euclidian distance between the current price and the strike price of its...

Powered Option

An exotic option whose standard payoff (underlying price in excess of the exercise price) is raised to a specific power (such as...

Power Option

An option whose payoff is based on the price of an underlying asset raised to a power. It is designed to allow the buyer...

Long Synthetic Futures

A synthetic futures which consists of buying calls and selling the same amount of puts with the same strike price and expiration date. Long synthetic futures = (long...

Long Strangle

An option trading strategy where an investor buys a call and a put on the same underlying with the same expiration date but with...