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Christmas Tree

   Also found in: Dictionary/thesaurus, Acronyms, Encyclopedia, Wikipedia, Hutchinson 0.02 sec.
Christmas Tree
An investment strategy in which an investor buys a call option at a low strike price and then uses the proceeds from that sale to sell two call options at two different (but higher) strike prices. When one draws this strategy graphically, it vaguely resembles a Christmas tree. The calls have the same underlying security or asset; importantly, they must have the same expiration date. If the underlying moves modestly in the direction the trader wants, he/she can realize exceptional profits; however, if the underlying moves away from the trader, he/she has the possibility to lose a great deal. The staggered strikes for the two call options the investor sells are intended to hedge against loss in this situation.


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George Herczak and a few other longtime residents on Rhodes did all they could to keep the tradition alive, but the neighborhood Christmas tree wasn't on their property.
The National Christmas Tree has been an American tradition since 1923.
Along with the prestigious title of 2005 National Christmas Tree Association "Marketer of the Year," Pronzini Christmas Tree Farms, headquartered in Petaluma, CA, has been presented with a New Holland MZ18H zero-turn-radius mower, courtesy of the National Christmas Tree Association and New Holland.
 
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