Downside Protection


 

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Downside Protection

Generally used in connection with covered call writing, this is the cushion against loss, in case of a price decline by the underlying security, that is afforded by the written call option. Alternatively, it may be expressed in terms of the distance the stock could fall before the total position becomes a loss (an amount equal to the option premium), or it can be expressed as percentage of the current stock price.



Downside Protection

Similar Matches

Protection

Protection

1. Without any adjective, or as "import protection," this refers to restriction of imports by means of tariffs and/or NTBs, and thereby to insulate domestic producers from competition with imported goods. 2. As "IP protection," or "intellectual property protection," this refers to enforcement of intellectual property rights by granting patents, copyrights, and trademarks and by prosecuting those who violate them.


Intellectual property protection

Intellectual property protection

Laws that establish and maintain ownership rights to intellectual property. The principal forms of IP protection are patents, trademarks, and copyrights.


Import protection

Import protection

See protection.


Endogenous protection

Endogenous protection

Protection that is explained as the outcome of economic and/or political forces. See political economy of protection.


Securities Investor Protection Corporation

Securities Investor Protection Corporation

In the US, a non profit organisation which provides insurance for cash and securities in customer accounts held by approved brokerage firms. Brokers and dealers registered with the Securities and Exchange Commission are obliged to be members of SIPC. In the event that such a firm fails, investors are covered up to a maximum of $500,000 of which no more than $100,000 can be cash.


Further Suggestions

Employment argument for protection
Retirement Protection Act of 1994
Environmental protection argument for a trade intervention
Contingent protection
Administered protection
Cultural argument for protection
Exchange rate protection
home responsibilities protection
Externalities argument for protection
Tariff protection
Consumer Credit Protection Act of 1968
Infant industry protection
Nominal rate of protection
Safeguards protection
Domestic distortions argument for protection
Effective rate of protection
Protectionism
Actual protection rate
Deposit Protection Scheme
Political economy of protection
Self-sufficiency argument for protection
Content protection
Building Societies Investor Protection Scheme
Mortgage payment protection insurance (MPPI)
protection applied


 
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