A full ratchet definition is a type of agreement that allows for the full resetting of terms in the event of a breach of contract. This means that all terms of the agreement are renegotiated from scratch, as if the agreement were being made for the first time. This can be a disadvantage for the … Read more
Roll down is a technical analysis term used to describe the action of rolling a call or put option forward in time to a later expiration date while simultaneously increasing the strike price by an equal amount. This is done to take advantage of the decrease in time value that occurs as expiration approaches. What … Read more
A Christmas tree options strategy is a type of options trading strategy that involves buying options at different strike prices and different expiration dates, and then selling them at a higher strike price and later expiration date. The Christmas tree options strategy is a way to profit from the expected volatility of the markets during … Read more
A covered straddle is an options trading strategy that involves buying a call and a put with the same strike price and expiration date, and holding them both until expiration. The idea behind this strategy is to profit from price movement in either direction, while at the same time having limited downside risk. To implement … Read more
