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Covered combination |
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Covered combinationA 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.Similar MatchesCombination annuityCombination annuitySee: Hybrid annuity CombinationCombinationA term used in options trading. It is a straddle using options with different exercise prices, where both the call and put options used are out of the money. Ratio Calendar CombinationRatio Calendar CombinationA strategy consisting of a simultaneous position of a ratio calendar spread using "calls" and a similar position using puts, where the striking price of the "calls" is greater that the striking price of the "puts". CombinationCombinationApplies to derivative products. Arrangement of options involving two long or two short positions with different expiration dates or strike (exercise) prices. See: Straddle. Combination bondCombination bond+ A bond backed by the government unit issuing it as well as by revenue from the project that is to be financed by the bond. Further SuggestionsCombination matchingCombination strategy Business combination Calendar Straddle or Combination Combination order |
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