Variable Ratio Write

Definition:

An option strategy in which the investor owns 100 shares of the underlying security and writes two call options against it, each option having a different striking price.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Total return

In performance measurement, the actual rate of return realized over some evaluation period. In fixed income analysis, the potential return that considers all three sources of return (coupon interest... Read More

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