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Bear Call Ladder

A vertical spread strategy which benefits from both high and low volatilities. However, the strategy is naturally bullish. In essence,…

Fiduciary Call

A capital-preserving tactic that is constructed by buying a European call option and a risk-free bond maturing on the option…

Warrant

A certificate that is issued by a company granting the right to the holder to buy a specific number of…

Short Put Ladder

An option trading strategy which combines uncapped profit potential with a capped risk. Therefore, it suits times when volatility is…

Latent Call Option

An option (latent option) that gives the issuer of a convertible bond or convertible preferred stock the right to redeem…

Step-Up Option

A step option which is equipped with an upward strike price reset mechanism effective within a limited period at a...

Nominal Exercise Price

The exercise price of an option whose underlying is a Ginnie Mae certificate. This price is equal to the dollar...

Zero Exercise Price Option

A cash-settled European call option whose exercise price is zero or very close to zero. Since its being exercised is almost certain,...

Pre-Funded Warrant

A warrant that allows the holder to buy a given amount of a firm's securities at the so-called nominal exercise price. This exercise...

Prefunded Warrant

A warrant that allows the holder to buy a given amount of a firm's securities at the so-called nominal exercise price. This exercise...