Christmas tree: A type of ratio vertical spread in which options are sold at two or more different exercise prices.
Additionally, rather than assuming a volatility a priori and computing prices from it, one can use the model to solve for volatility, which gives the implied volatility of an option at given prices, durations and exercise prices.
A long strangle position is constructed by purchasing both a put and a call at exercise prices some distance from the current price of the underlying asset. In terms of profit and loss, it acts very much like a long straddle.
An options strategy that involves writing, or selling, call options at progressively higher exercise prices.
Condor
The sale or purchase of 2 options with consecutive exercise prices, together with the sale or purchase of 1 option with an immediately lower exercise price and 1 option with an immediately higher exercise price.
Selling covered call options at incrementally rising exercise prices, so that as the price of the underlying stock rises and the options are exercised, the seller receives a higher average price than the original exercise price.
The strike price of a put or call option multiplied by its contract size. Aggregate exercise prices are used to determine the dollar amount required should the option be exercised.
Alligator Spread ...
Perpendicular spread
Option strategy involving the purchase of options with similar expiration dates and different exercise prices.
Perpetual bond
Nonredeemable bond with no maturity date that pays regular interest rates indefinitely.
Diagonal Spread - A spread of the same class of options but with different exercise prices and different expiration dates.
These options were granted between February 21, 2003 and February 24, 2011 at exercise prices ranging from $2.925 to $11.
Price Spread
A simultaneous purchase and sale of two options with the same expiration date but different exercise prices.
Condors are best used when the options are close to expiration. If the options are longer dated then the underlying asset has more chances to break away and trade outside of the boundary exercise prices.
Comments (5)
devendra shah ...
a a put or call option multiplied by the number of underlying securities involved in the contract (contract size). When calculating the aggregate exercise price, the premium paid or received on the option is not considered. Aggregate exercise prices ...
 See also: Option, Exercise price, Exercise, Options, Underlying
  
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