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In finance, a collar is an option strategy that limits the range of possible positive or negative returns on an underlying to a specific range. A collar strategy is used as one of the ways to hedge against possible losses and it represents long put options financed with short call options. [1]
Collar - buy the underlying and then simultaneous buying of a put option below current price (floor) and selling a call option above the current price (cap). Condor – combination of two vertical spreads, similar to a butterfly but with a range of underlying values yielding the maximum profit.
Following is a glossary of stock market terms. All or none or AON: in investment banking or securities transactions, "an order to buy or sell a stock that must be executed in its entirely, or not executed at all". [1] Ask price or Ask: the lowest price a seller of a stock is willing to accept for a share of that given stock. [2]
A simplified definition of a stock would be that it represents a share of ownership of a business. What is a stock and how does it work? A stock is a small piece of ownership of a company. The ...
If you own stock, you own part of a company. It's as simple as that. Those shares are literal shares in the success (or failure) of a company. If the company does well, you can benefit from its ...
A stock buyback, or share repurchase, is when a company repurchases its own stock, reducing the total number of shares outstanding. In effect, buybacks “re-slice the pie” of profits into fewer ...
However, instead of going long on the stock, they will buy an out of the money call option, and simultaneously sell an out of the money put option, using the money from the sale of the put option to purchase the call option. Then as the stock goes up in price, the call option will be worth more, and the put option will be worth less. [1]
Traditionally, the stock tie is used in the hunt field as a safety measure: in case of injury, the tie may be used as a temporary bandage for a horse's leg or a sling for a rider's arm. It also is useful in keeping rain or wind out of the rider's collar. Stock ties often are worn by riders along with a shadbelly.