A short straddle is a straddle that is constructed by selling two options: one put option and one call option....

An option is a derivative contract giving the holder (buyer) the right, without the obligation, to trade (buy or sell)...

The call spread is an option combination that constitutes a modified version of a call option. By definition, it is...

Put overwriting is an option strategy that involves being simultaneously long stock and short puts on the same share of...

Writing naked options is usually subject to initial margin requirements. The initial margin that is required by the CBOE for...

An illiquid option is a contract for which there is no secondary market, i.e., it is not tradable on an...

A standard power option has a nonlinear payoff at maturity. The payoff of a call (power call option) is: Power...

Essentially, a floor is a strip of put options on forward interest rates. Therefore, a floorlet is a put option...

A multi-asset option is one whose payout depends on the overall performance of more than one underlying asset. In addition...

An option is a derivative contract giving the holder (buyer) the right, without the obligation, to trade (buy or sell)...