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Box Spread (options)
In option (finance), 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 bounds, 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 o ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
1256 Contract
A 1256 Contract, as defined in section 1256 of the U.S. Internal Revenue Code, is any regulated futures contracts, foreign currency contracts, non- equity options (broad-based stock index options (including cash-settled ones), debt options, commodity futures options, and currency options), dealer equity options, and any dealer security futures contracts. For U.S. Federal income tax purposes, mark-to-market accounting is used for each 1256 contract as of the end of each tax year, and such contracts are treated as sold for its fair market value on the last business day of such taxable year (i.e., as "closed"). The Internal Revenue Service (IRS) is not clear on whether QQQ, DIA and SPY options should be treated as section 1256 contracts. On one hand, these are seen as equity options, not within the definition of a 1256 Contract, but others consider them as non-equity option and meeting the definition of a "broad-based" index option. Instead, the IRS grants penalty relief if a br ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Robinhood (company)
Robinhood Markets, Inc. is an American financial services company based in Menlo Park, California. It provides an electronic trading platform that facilitates trades of stocks, exchange-traded funds, options, index options, futures contracts, outcomes on prediction markets, and cryptocurrency. It also offers cryptocurrency wallets, wealth management, credit cards and other banking services, some in partnership with banks insured by the FDIC, as well as a news website, Sherwood.News. The company's revenue comes from transactions (including payment for order flow and markups on cryptocurrency; 63% of Q1 2025 revenues), net interest income (primarily from margin lending, interest earned on customers' cash balances, and credit cards; 31% of Q1 2025 revenues), and other sources ( subscription fees and advertising revenue on Sherwood.News; 6% of Q1 2025 revenues). The company has 25.8 million funded customers and $221 billion in assets under custody. Its platform is availab ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Debt
Debt is an obligation that requires one party, the debtor, to pay money Loan, borrowed or otherwise withheld from another party, the creditor. Debt may be owed by a 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, principal and interest. Loans, bond (finance), bonds, notes, and Mortgage loan, mortgages are all types of debt. In financial accounting, debt is a type of financial transaction, as distinct from equity (finance), equity. The term can also be used metaphorically to cover morality, 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 and comes by way of Old French from the Latin verb ' ... [...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 jargon, aggressive trading strategies, stories of extreme gains and losses acquired in the stock market, and for playing a major role in the GameStop short squeeze that caused significant losses for a number of US hedge funds and short sellers for a duration of time in early 2021. 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 growth of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Reddit
Reddit ( ) is an American Proprietary software, proprietary social news news aggregator, aggregation and Internet forum, forum Social media, social media platform. 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 ("upvoted" or "downvoted") by other members. Posts are organized by subject into user-created boards called "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 unpaid volunteers. It is operated by Reddit, Inc., based in San Francisco. As of February 2025, Reddit is the List of most-visited websites, ninth-most-visited website in the world. According to data provided by Similarweb, 51.75% of the website traffic comes from the United St ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Basis Point
A basis point (often abbreviated as bp, often pronounced as "bip" or "beep") is one hundredth of 1 percentage point. Changes of interest rates are often stated in basis points. For example, if an existing interest rate of 10 percent is increased by 1 basis point, the new interest rate would be 10.01 percent. The related term '' permyriad'' means one part per ten thousand. Definition :1 basis point (bp) = 0.01%, 10−4, , or 0.0001. :10 bp = 0.1%, 10−3, , or 0.001. :100 bp = 1%, 10−2, , or 0.01. Basis points are used as a convenient unit of measurement in contexts where percentage differences of less than 1% are discussed. The most common example is interest rates, where differences in interest rates of less than 1% per year are usually meaningful to talk about. For example, a difference of 0.10 percentage points is equivalent to a change of 10 basis points (e.g., a 4.67% rate increases by 10 basis points to 4.77%). In other words, an increase of 100 basis points means a ri ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
United States Treasury Security
United States Treasury securities, also called Treasuries or Treasurys, are government bond, government debt instruments issued by the United States Department of the Treasury to finance government spending as a supplement to taxation. Since 2012, the U.S. government debt has been managed by the Bureau of the Fiscal Service, succeeding the Bureau of the Public Debt. There are four types of marketable Treasury securities: #Treasury bill, Treasury bills, #Treasury note, Treasury notes, #Treasury bond, Treasury bonds, and #TIPS, Treasury Inflation Protected Securities (TIPS). The government sells these securities in auctions conducted by the Federal Reserve Bank of New York, after which they can be traded in secondary markets. Non-marketable securities include savings bonds, issued to individuals; the State and Local Government Series (SLGS), purchaseable only with the proceeds of state and municipal bond sales; and the Government Account Series, purchased by units of the feder ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Strangle (options)
In finance, a strangle is an 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 a lower cost but lower probability of profit than straddles. Characteristics A strangle, requires the investor to simultaneously buy or sell b ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Futures Contract
In finance, a futures contract (sometimes called 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 item transacted is usually a commodity or financial instrument. The predetermined price of the contract is known as the ''forward price'' or ''delivery 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 (finance), 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 (finance), long position holder and the selling party is said to be the Short (finance), short position holder. As both parties risk their counter-party reneging if the price goes against them, the contract may involve both ... [...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. 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 Dubai or Singapore would likewise be deemed a Eurodollar deposit (sometimes an Asiadollar). 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. Eurodollars have different regulatory requirements than dollars held in U.S. banks. Eurodollars can be riskier than assets held in U.S. banks, which include at least partial deposit insurance, and as a result, demand a higher interest rate. There is no connection with the euro currency of the European Union. History After World War II, the quantity of physical U.S. dollar ba ... [...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 an American 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. For most of its history, the exchange was in the then common form of a non-profit organization, owned by members of the exchange. 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 ma ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
