- Retail Investor .org : How to hedge foreign currency exposure
- Option Strategy: Long Gamma, Short Vega | SurlyTrader
- Basic Fixed Income Derivative Hedging - Financial
Last Trading Day - The third Friday of the expiration month. Options cease trading at 8:55 PM Eastern Time on the last trading day.
Retail Investor .org : How to hedge foreign currency exposure
Option Strategy: Long Gamma, Short Vega | SurlyTrader
Listed Option - A put or call option that is traded on a national option exchange. Listed options have fixed striking prices and expiration dates.
Basic Fixed Income Derivative Hedging - Financial
Series - An option contracts on the same underlying stock having the same striking price, expiration date, and unit of trading.
Implied Volatility - A measure of the volatility of the underlying stock, it is determined by using prices currently existing in the market at the time, rather than using historical data on the price changes of the underlying stock. Read more about Implied Volatility.
Incremental Return Concept - A strategy of covered call writing in which the investor is striving to earn an additional return from option writing against a stock position which he is targeted to sell-possibly at substantially higher prices.
Leverage - In investments, the attainment of greater percentage profit and risk potential. A call holder has leverage with respect to a stock holder-the former will have greater percentage profits and losses than the latter, for the same movement in the underlying stock. Read About How To Calculate Options Leverage.
Volatility - A measure of the amount by which an underlying security is expected to fluctuate in a given period of time. Generally measured by the annual standard deviation of the daily price changes in the security, volatility is not equal to the Beta of the stock. Read More About Volatility.