摘要: An advanced options strategy that involves buying and holding four different options with different strike prices. The iron condor is constructed by holding a long and short position in two different [阅读全文:]
摘要: A measure of investor sentiment in the market measured by looking at the number of opening long call options to opening long put options purchased on the International Stock Exchange. The measure only[阅读全文:]
摘要: Used in regression analysis, Kappa represents the ratio of the dollar price change in the price of an option to a 1% change in the expected price volatility.
Remember, the price of the o[阅读全文:]
摘要: An investment strategy that attempts to profit from the differences between actual and theoretical futures prices of the same stock index. This is done by simultaneously buying (or selling) a stock in[阅读全文:]
摘要: A type of employee stock option with a tax benefit, when you exercise, of not having to pay ordinary income tax. Instead, the options are taxed at a capital gains rate.
Although ISOs hav[阅读全文:]
摘要: A technique for calculating termination payments when a swap is ended early. The indemnification method requires the responsible counterparty to compensate the nonresponsible counterparty for all loss[阅读全文:]
摘要: Dimensions of risk involved in taking a position in an option (or other derivative). Each risk variable is a result of an imperfect assumption or relationship of the option with another underlying var[阅读全文:]
摘要: A provision contained in an underwriting agreement that gives the underwriter the right to sell investors more shares than originally planned by the issuer. This would normally be done if the demand f[阅读全文:]
摘要: An option strategy created by selling an in-the-money put at the same time as an in-the-money call.
By entering into this position, the investor, receiving a large premium up-front, hope[阅读全文:]
摘要: A type of transaction that limits investment risk with the use of derivatives, such as options and futures contracts. Hedging transactions purchase opposite positions in the market in order to ensure [阅读全文:]