Dictionary
- Straddle
- The purchase or sale of an equal number of puts and calls, with the same strike price and expiration dates. A straddle provides the opportunity to profit from a prediction about the future volatility of the market.
- Strip, Strap
- Strip is a combination of two puts and one call options of the same series, with the same underlying security, exercise price and expiration date. Strap is a combination of two calls and one put options of the same series, with the same underlying security, exercise price and expiration date.
- Substitution Swap
- Exchange of one bond for another with similar attributes but a more attractive price.
- Support
- A price level under which it is supposedly difficult for a stock or stock index to fall.
- Swap
- See Currency Swap.