Categories: Options | Derivatives Derivatives traders at the Chicago Board of Trade. ... In finance options are types of derivative contracts, including call options and put options, where the future payoffs to the buyer and seller of the contract are determined by the price of another security, such as a common stock. ... In finance, a vanilla option is a type of derivative security. ... In finance, the style or family of an option is a general term denoting the class into which the option falls, usually defined by the dates on which the option may be exercised. ... This article does not cite any references or sources. ... A put option (sometimes simply called a put) is a financial contract between two parties, the buyer and the writer of the option. ... For other uses of the term Warrant, see Warrant (disambiguation) A warrant is a security that entitles the holder to buy or sell a certain additional quantity of an underlying security. ... A bond option is similar to a stock option with the difference that the underlying asset is a bond. ... An Employee stock option is a call option on a companys own stock issued as a form of non-cash compensation. ... In finance, a foreign exchange option (commonly shortened to just FX option) is a derivative where the owner has the right but not the obligation to exchange money denominated in one currency into another currency at a pre-agreed exchange rate on a specified date. ... The introduction to this article provides insufficient context for those unfamiliar with the subject matter. ... Payoffs and profits from buying stock and writing a call. ... A naked put is a put option where the option writer does not have a short position in the stock. ... The bear call spread is a limited profit, limited risk options trading strategy that can be used when the options trader is moderately bearish on the underlying security. ... The bear put spread is a limited profit, limited risk options trading strategy that can be used when the options trader is moderately bearish on the underlying security. ... The introduction to this article provides insufficient context for those unfamiliar with the subject matter. ... The bull put spread is a limited profit, limited risk options strategy that can be used when the options trader is moderately bullish on the underlying security. ... There are very few or no other articles that link to this one. ... In finance, a straddle is an investment strategy involving the purchase or sale of particular derivatives. ... The long straddle is a non-directional options trading strategy that involves the simultaneous buying of a put and a call of the same underlying stock, striking price and expiration date. ... The long strangle is a neutral-outlook options trading strategy that involve the simultaneous buying of a slightly out-of-the-money put and a slightly out-of-the-money call of the same underlying security and expiration date. ... In options trading, a butterfly is a combination trade resulting in the following net position: Long 1 call at (X - a) strike Short 2 calls at X strike Long 1 call at (X + a) strike all with the same expiration date. ... There are very few or no other articles that link to this one. ... To straddle is to sit, stand or walk with the legs spread wide. ... The short strangle is a neutral-outlook options trading strategy that involves the simultaneous selling of a slightly out-of-the-money put and a slightly out-of-the-money call of the same underlying security and expiration date. ... The introduction to this article provides insufficient context for those unfamiliar with the subject matter. ... Volatility arbitrage, a. ... In finance, a debit spread, AKA net debit spread, results when an investor simultaneously buys an option with a higher premium and sells an option with a lower premium. ... Credit spread is the difference in yield between different securities due to different credit quality. ... A synthetic underlying position synthetically duplicates the payoff of a long underlying position with a long call and short put at the same strike and expiration. ... In finance, an exotic option is a derivative which has features making it more complex than commonly traded products (vanilla options). ... The style or family of a financial option is a general term denoting the class into which the option falls, usually defined by the manner in which the option may be exercised. ... The style or family of a financial option is a general term denoting the class into which the option falls, usually defined by the manner in which the option may be exercised. ... A barrier option is a type of financial option where the option to exercise depends on the underlying crossing or reaching a given barrier level. ... A binary option is a type of option where the payoff is either some fixed amount of some asset or nothing at all. ... To meet Wikipedias quality standards, this article or section may require cleanup. ... Mountain ranges are exotic options originally marketed by Société Générale in 1998. ... Option contracts are complex to value. ... In finance, moneyness is a measure of the degree to which a derivative security is likely to have positive monetary value at its expiration. ... Option Value In finance, the value of an option consists of two components, its intrinsic value and its time value. ... The Black-Scholes model, often simply called Black-Scholes, is a model of the varying price over time of financial instruments, and in particular stocks. ... The Black model (sometimes known as the Black-76 model) is a variant the Black-Scholes option pricing model. ... In finance, the binomial options pricing model provides a generalisable numerical method for the valuation of options. ... Stochastic volatility models are used in the field of quantitative finance to evaluate derivative securities, such as options. ... In financial mathematics, the implied volatility of an option contract is the volatility implied by the market price of the option based on an option pricing model. ... Net volatility refers to the volatility implied by the price of an option spread trade involving two or more options. ... Local volatility is a term used in quantitative finance to denote the set of diffusion coefficients, , that are consistent with the set of market prices for all option prices on a given underlier. ... The Chicago Board Options Exchange (CBOE) is one of the worlds largest options exchanges with an annual trade of over 15 billion shares of stock options in some 1200 companies. ... The derivatives markets are the financial markets for derivatives. ... An option screener is a tool that evaluates options based on criteria and generates a list of potential trading ideas. ... The introduction to this article provides insufficient context for those unfamiliar with the subject matter. ... Pin risk occurs when the underlier of an option contract settles close to the options strike value at expiration. ... This article or section is in need of attention from an expert on the subject. ... In the field of derivatives, a popular form of swap is the interest rate swap, in which one party exchanges a stream of interest for another partys stream. ... Total return swap, or total rate of return swap, or TRORS, a contract in which one party receives interest payments on a reference asset plus any capital gains and losses over the payment period, while the other receives a specified fixed or floating cash flow unrelated to the credit worthiness... An equity swap, a branch of derivative security, is a swap in which at least one party pays the return on a stock or stock index. ... A credit default swap (CDS) is a swap designed to transfer the credit exposure of fixed income products between parties. ... Forex swap is an over the counter short term interest rate derivative instrument. ... A currency swap is a foreign exchange agreement between two parties to exchange a given amount of one currency for another and, after a specified period of time, to give back the original amounts swapped. ... Constant Maturity Swaps are used in the financial markets to have a reference yield curve. ... A basis swap is an interest rate swap which involving exchange of two floating rate financial instruments denominated in the same currency. ... A variance swap is a financial derivative whose payoff is the realised volatility squared of the underlier based on a prespecified set of sampling points. ...