fence


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Fence

A position in which an investor is long (or short) on an out-of-the-money put, long (or short) on an opposite out-of-the-money call in addition to being long (or short) on the underlying asset. Both options have the same expiration date. A fence position sets a floor and ceiling for the underlying asset and limits potential losses for the investor. It is often used by traders in farm commodities.

fence

An investment position consisting of being long (or short) a stock or commodity, being long (or short) an out-of-the-money put, and being short (or long) an out-of-the-money call. Both options have the same expiration date.
References in periodicals archive ?
The new fence, a proposal for which has been in the works for some time, will enable round the clock real-time surveillance.
Mark Berry of Tidewater Fence said, "Our goal is to educate the community on how to get the best results for all their property improvement projects at any budget.
Post and picket fences are the next level of fence building.
To protect a fence post against the elements, put it in a bucket of wood preservative for at least an hour if it will be below ground level, or for at least five minutes if not.
New Zealand has decided to import the benefits of offshore island habitats inland by creating "mainland islands," typically surrounded by large predator-resistant fences.
Last year, Erica scaled up her fence models to test how they would do outdoors in real snow.
After the exhibition, the big fence was separated from its shadow and reinstalled on a lawn next to the museum.
Two main kinds of products are assembled at the plant: wooden garden tiles and wooden garden fence sections.
The 318-ft-long fence was made by Westech Fence in Mt.
Our fence --our collusion in this rewriting of history--protects us from shame and sorrow about our own shortcomings.
Any fence must be securely fixed so for this reason a range of fencing accessories should be used including gravel, boards, panel fence clips and metal post sockets.
The prettier fence allows folks on either side of the border to look out over the other side and even to communicate through, but it's tall enough to prevent any clambering over the top.