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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 MatchesCombinationCombinationA 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. Business combinationBusiness combinationSee: Merger Calendar Straddle or CombinationCalendar Straddle or CombinationSee Calendar Spread. 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 matchingCombination matchingAlso 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 SuggestionsCombination orderCombination bond Combination annuity Combination strategy Ratio Calendar Combination |
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