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Box Spread (options)
In options trading, a box spread is a combination of positions that has a certain (i.e., riskless) payoff, considered to be simply "delta neutral interest rate position". For example, a bull spread constructed from calls (e.g., long a 50 call, short a 60 call) combined with a bear spread constructed from puts (e.g., long a 60 put, short a 50 put) has a constant payoff of the difference in exercise prices (e.g. 10) assuming that the underlying stock does not go ex-dividend before the expiration of the options. If the underlying asset has a dividend of X, then the settled value of the box will be 10 + x. Under the no-arbitrage assumption, the net premium paid out to acquire this position should be equal to the present value of the payoff. Box spreads' name derives from the fact that the prices for the underlying options form a rectangular box in two columns of a quotation. An alternate name is "alligator spread," derived from the large number of trades required to open and close th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Short Strangle
In finance, a strangle is a options strategy involving the purchase or sale of two options, allowing the holder to profit based on how much the price of the underlying security moves, with a neutral exposure to the ''direction'' of price movement. A strangle consists of one call and one put with the same expiry and underlying but different strike prices. Typically the call has a higher strike price than the put. If the put has a higher strike price instead, the position is sometimes called a guts. If the options are purchased, the position is known as a long strangle, while if the options are sold, it is known as a short strangle. A strangle is similar to a straddle position; the difference is that in a straddle, the two options have the same strike price. Given the same underlying security, strangle positions can be constructed with lower cost and lower probability of profit than straddles. Characteristics A strangle, requires the investor to simultaneously buy or sell both a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Jelly Roll (options)
A jelly roll, or simply a roll, is an options trading strategy that captures the cost of carry of the underlying asset while remaining otherwise neutral. It is often used to take a position on dividends or interest rates, or to profit from mispriced calendar spreads. A jelly roll consists of a long call and a short put with one expiry date, and a long put and a short call with a different expiry date, all at the same strike price. In other words, a trader combines a synthetic long position at one expiry date with a synthetic short position at another expiry date. Equivalently, the trade can be seen as a combination of a long time spread and a short time spread, one with puts and one with calls, at the same strike price. The value of a call time spread (composed of a long call option and a short call option at the same strike price but with different expiry dates) and the corresponding put time spread should be related by put-call parity, with the difference in price explained ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Tits Up
TIT, Tit, Tits, or tit may refer to: Birds * Tit (bird) or Paridae, a large family of passerine birds * Bearded tit, a small reed-bed passerine bird * Long-tailed tits or Aegithalidae, a family of passerine birds with long tails * Tit-babbler or ''Macronus'', a genus in the family Timaliidae * Tit berrypecker, a species of bird in the family Paramythiidae * Tit hylia, a species of bird in the family Cettiidae * Tomtit, a small passerine bird of the family Petroicidae * Wrentit, a small bird, the only species in the genus ''Chamaea'' Places * Tin Tsz stop, a Light Rail stop in Hong Kong * Tit, Adrar, a town in Adrar Province, central Algeria * Tit, Tamanrasset, a village in Tamanrasset Province, southern Algeria * Tit-e Olya, a village in West Azerbaijan Province, Iran * Tehran International Tower, a residential tower located in Tehran, Iran People * Jacques Tits (1930–2021), French/Belgian mathematician * Tit (name), Romanian male given name * Tit Linda Sou (born 1 ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Robinhood (company)
Robinhood Markets, Inc. is an American financial services company headquartered in Menlo Park, California, that facilitates commission (remuneration), commission-free trades of stocks, exchange-traded funds and Cryptocurrency, cryptocurrencies as well as individual retirement accounts via a mobile app introduced in March 2015. Robinhood is a Financial Industry Regulatory Authority, FINRA-regulated broker-dealer, registered with the U.S. Securities and Exchange Commission, and is a member of the Securities Investor Protection Corporation. The company's revenue comes from three main sources: interest earned on customers' cash balances, Payment for order flow, selling order information to high-frequency traders (a practice for which the SEC opened an investigation into the company in September 2020) and Margin (finance), margin lending. , Robinhood had 22.8 million funded accounts and 15.9 million monthly active users. In April 2022, Robinhood rolled out a cryptocurrency wallet to ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Debt
Debt is an obligation that requires one party, the debtor, to pay money or other agreed-upon value to another party, the creditor. Debt is a deferred payment, or series of payments, which differentiates it from an immediate purchase. The debt may be owed by sovereign state or country, local government, company, or an individual. Commercial debt is generally subject to contractual terms regarding the amount and timing of repayments of principal and interest. Loans, bonds, notes, and mortgages are all types of debt. In financial accounting, debt is a type of financial transaction, as distinct from equity. The term can also be used metaphorically to cover moral obligations and other interactions not based on a monetary value. For example, in Western cultures, a person who has been helped by a second person is sometimes said to owe a "debt of gratitude" to the second person. Etymology The English term "debt" was first used in the late 13th century. The term "debt" comes ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
R/wallstreetbets
r/wallstreetbets, also known as WallStreetBets or WSB, is a subreddit where participants discuss stock and option trading. It has become notable for its colorful and profane jargon, aggressive trading strategies, and for playing a major role in the GameStop short squeeze that caused losses for some US firms and short sellers in a few days in early 2021. The community is run by u/OPINION_IS_UNPOPULAR, who has moderated the community for over 9 years. Overview The subreddit, describing itself through the tagline "Like 4chan found a Bloomberg terminal", is known for its aggressive trading strategies, which primarily revolve around highly speculative, leveraged options trading. Members of the subreddit are often young retail traders and investors who ignore fundamental investment practices and risk management techniques, so their activities are often considered gambling. The growing popularity of no-commission brokers and mobile online trading has potentially contributed to the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Reddit
Reddit (; stylized in all lowercase as reddit) is an American social news aggregation, content rating, and discussion website. Registered users (commonly referred to as "Redditors") submit content to the site such as links, text posts, images, and videos, which are then voted up or down by other members. Posts are organized by subject into user-created boards called "communities" or "subreddits". Submissions with more upvotes appear towards the top of their subreddit and, if they receive enough upvotes, ultimately on the site's front page. Reddit administrators moderate the communities. Moderation is also conducted by community-specific moderators, who are not Reddit employees. As of March 2022, Reddit ranks as the 9th- most-visited website in the world and 6th most-visited website in the U.S., according to Semrush. About 42–49.3% of its user base comes from the United States, followed by the United Kingdom at 7.9–8.2% and Canada at 5.2–7.8%. Twenty-two percent of U.S. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Strangle (options)
In finance, a strangle is a options strategy involving the purchase or sale of two options, allowing the holder to profit based on how much the price of the underlying security moves, with a neutral exposure to the ''direction'' of price movement. A strangle consists of one call and one put with the same expiry and underlying but different strike prices. Typically the call has a higher strike price than the put. If the put has a higher strike price instead, the position is sometimes called a guts. If the options are purchased, the position is known as a long strangle, while if the options are sold, it is known as a short strangle. A strangle is similar to a straddle position; the difference is that in a straddle, the two options have the same strike price. Given the same underlying security, strangle positions can be constructed with lower cost and lower probability of profit than straddles. Characteristics A strangle, requires the investor to simultaneously buy or sell both a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Futures Contract
In finance, a futures contract (sometimes called a futures) is a standardized legal contract to buy or sell something at a predetermined price for delivery at a specified time in the future, between parties not yet known to each other. The asset transacted is usually a commodity or financial instrument. The predetermined price of the contract is known as the ''forward price''. The specified time in the future when delivery and payment occur is known as the ''delivery date''. Because it derives its value from the value of the underlying asset, a futures contract is a derivative. Contracts are traded at futures exchanges, which act as a marketplace between buyers and sellers. The buyer of a contract is said to be the long position holder and the selling party is said to be the short position holder. As both parties risk their counter-party reneging if the price goes against them, the contract may involve both parties lodging as security a margin of the value of the contract with a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Eurodollar
Eurodollars are U.S. dollars held in time deposit accounts in banks outside the United States, which thus are not subject to the legal jurisdiction of the U.S. Federal Reserve. Consequently, such deposits are subject to much less regulation than deposits within the U.S. The term was originally applied to U.S. dollar accounts held in banks situated in Europe, but it expanded over the years to cover US dollar accounts held anywhere outside the U.S. Thus, a U.S. dollar-denominated deposit in Tokyo or Beijing would likewise be deemed a Eurodollar deposit (sometimes an Asiadollar). The offshore locations of the Eurodollar make it exposed to potential country risk and economic risk. There is no connection with the euro currency of the European Union. More generally, the ''euro-'' prefix can be used to indicate any currency held in a country where it is not the official currency, broadly termed "eurocurrency", for example, Euroyen or even Euroeuro. History After World War II, the qua ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Chicago Mercantile Exchange
The Chicago Mercantile Exchange (CME) (often called "the Chicago Merc", or "the Merc") is a global derivatives marketplace based in Chicago and located at 20 S. Wacker Drive. The CME was founded in 1898 as the Chicago Butter and Egg Board, an agricultural commodities exchange. Originally, the exchange was a non-profit organization. The Merc demutualized in November 2000, went public in December 2002, and merged with the Chicago Board of Trade in July 2007 to become a designated contract market of the CME Group Inc., which operates both markets. The chairman and chief executive officer of CME Group is Terrence A. Duffy, Bryan Durkin is president. On August 18, 2008, shareholders approved a merger with the New York Mercantile Exchange (NYMEX) and COMEX. CME, CBOT, NYMEX, and COMEX are now markets owned by CME Group. After the merger, the value of the CME quadrupled in a two-year span, with a market cap of over $25 billion. Today, CME is the largest options and futures con ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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