Combination strategy


 

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Combination strategy

A strategy in which a put and call with the same strike price and expiration are either both bought or both sold. Related: Straddle



Combination strategy

Similar Matches

Business combination

Business combination

See: Merger


Covered combination

Covered combination

A strategy in which one call and one put with the same expiration, but different strike prices, are written against each 100 shares of the underlying stock. Example: writing 1 XYZ Jun 50 call and 1 XYZ Jun 55 put, and buying 100 shares of XYZ stock. In actuality, this is not a fully 'covered' strategy because assignment on the short put would require purchase of additional stock.


Combination annuity

Combination annuity

See: Hybrid annuity


Combination

Combination

Applies to derivative products. Arrangement of options involving two long or two short positions with different expiration dates or strike (exercise) prices. See: Straddle.


Combination matching

Combination matching

Also called horizon-matching, a variation of multiperiod immunization and cash flow-matching in which a portfolio is created that is always duration-matched and also cash-matched in the first few years.


Further Suggestions

combination
Combination bond
Calendar Straddle or Combination
Combination order
Ratio Calendar Combination


 
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