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An option strategy that achieves its maximum potential if the underlying security rises far enough, and has its maximum risk if the security falls far enough. An option with a lower striking price is bought and one with a higher striking price is sold, both generally having the same expiration date. Either puts or calls may be used for the strategy.
See also Bear Spread.
What is an embedded option?
Naive diversification A strategy whereby an investor simply invests in a number of different assets and hopes that the variance of the expected return on the portfolio is lowered. Related: Markowitz diversification. Naked The opposite […]
FIA released yearly statistics that show the total number of futures and options traded on exchanges worldwide reached a record level of 46.77 billion contracts in 2020, up 35.6% from 2019.
Forex Technical Outlook – USDJPY USDJPY is trading above the March 2016 highs at the 114.44-54 area again. Yesterday the pair peaked against the area. Today in the Asia session, the price moved above the […]
