Term of the Day - butterfly spread
For Friday, January 23, 2009
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Term of the Day - butterfly spread
An options strategy built on four trades at one expiration date and three different strike prices. For call options, one option each at the high and low strike price are bought, and two options at the middle strike price are sold. For put options, the trades are reversed. This is a limited risk, limited return strategy that pays off when the price of the underlier remains around the middle strike price. This strategy is essentially a combination of a bull and bear spread.
Friday's Featured Funny Definition - tax refund
A tactic devised by politicians to give you back some of your own money in such a way that you are supposed to think it's a gift.
Click here to enjoy the the hilarious renditions we found for a number of popular terms!
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Quote of the Day
Let's get it clear on what phenomenal wealth is. I think that what Larry Ellison and Bill Gates have is phenomenal wealth. I'm just a two bit billionaire. - Jim Clark
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