fence

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Related to fence off: fence out, mend fences

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 Manama and Central Municipal Councils last year demanded the Municipalities and Urban Planning Affairs Ministry fence off the bay to stop people from intruding into private land, but their request was put on hold due to a lack of funds.
The NKZI has considered various solutions in addition to building a wall to fence off the line, which might turn out to be rather costly.
Some of these sites have already been filled this way,AcentsAA he said, adding that the municipality is also forcing owners to fence off their sites.
Inset: Coun Matt Redmond who is appalled at the decision to fence off the statue.
Middlesbrough Council has announced it will set aside pounds 17,000 to fence off a 268m stretch of the road, after the Evening Gazette revealed nothing had been done to repair the broken fence since Stephen's death eight months ago.
Do we fence off mountain areas because hikers might fall off precipices?
Director Dave Marshall said, "As a result of them returning, the club now feel obligated to fence off access to the area.