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Spraddle

An option combination, similar to a straddle, in which both the put and call legs have the same expiration date…

Short Diagonal Calendar Call Spread

A diagonal calendar call spread which is constructed by selling a long-term at-the-money call option and buying a short-term out-of-the-money…

Flexible Exchange-Traded Option

An exchange-traded (though customizable) option that allows the parties to specify the strike price and expiration date according to their…

Sell a Spread

An options trading strategy that is based on establishing a spread position in which the premium on the short option…

Roll Up and Out

An option-related strategy that is based on the replacement of a position by closing out one option with a near-month…

Net Payoff

In the case of a call option, it is the amount that results from subtracting the strike price and the…

Lookback Feature

With respect to option contracts and other types of derivatives, it refers to the feature allowing the holder (the long)…

Gut Spread

An option trading strategy which is established by selling/ buying in-the-money calls and puts. All the options involved have the…

Forward Swap Option

An option that gives its holder the right, without the obligation, to enter into a forward swap at a given maturity/expiration…

Power Reverse Convertible

An equity structured product (and a reverse convertible) that provides an enhanced coupon. Coupon enhancement (yield enhancement) is typically done…