What is another name for a zero cost collar?

A zero cost collar is a form of options collar strategy to protect a trader’s losses by purchasing call and put options that cancel each other out. The investor buys a protective put and sells a covered call. Other names for this strategy include zero cost options, equity risk reversals, and hedge wrappers.

What does TGT mean in trading?

Target Share Technical Analysis (TGT) – Investing.com India.

What is an uncovered position?

In option trading, the term “uncovered” refers to an option that does not have an offsetting position in the underlying asset. Uncovered option positions are always written options, or in other words options where the initiating action is a sell order. This is also known as selling a naked option.

What is a strip trading?

A strip or U.S. Treasury STRIPS is a bond that is chopped up into a number of interest payments and a single principal payment, each of which is then separately sold to investors. In options trading, a strip is a strategy used to hedge the risk of a wrong bet on a decline in a stock’s price.

What is put spread?

A put spread is an option spread strategy that is created when equal number of put options are bought and sold simultaneously. Additionally, unlike the outright purchase of put options which can only be employed by bearish investors, put spreads can be constructed to profit from a bull, bear or neutral market.

What is slippage cost?

Slippage refers to the difference between the expected price of a trade and the price at which the trade is executed. It can also occur when a large order is executed but there isn’t enough volume at the chosen price to maintain the current bid/ask spread.

What is CMP and TGT?

CMP – Current market price. TGT – Target Price.

What is CMP and PT in share market?

The term CMP, when used in trading stocks, stands for current market price. Also known as current market value, this refers to the rough price at which shares currently are trading in the market.

What is future strip?

Futures strips are the buying or selling of futures contracts in sequential delivery months. They are typically used to lock in prices for specific time frames. Futures strips often trade in the energy market.

What is an option collar?

A collar is an options strategy that involves buying a downside put and selling an upside call that is implemented to protect against large losses, but which also limits large upside gains. The protective collar strategy involves two strategies known as a protective put and covered call.

What is Seagull option?

A seagull option is a three-legged option trading strategy that involves either two call options and a put option or two puts and a call. Meanwhile, a call on a put is called a split option. A bullish seagull strategy involves a bull call spread (debit call spread) and the sale of an out of the money put.