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 ?
When the school decides to fence off the land, as they undoubtedly will, how unsightly will the fence look?
Now plot owners want to fence off their property and within months the rest would follow and people would be shut off from the sea," he said.
Brimhall Library have swooped down on employees and injured one man this year with their sharp talons, forcing workers in protective hard hats to fence off the employee parking lot.
But it was the decision to fence off the lawn to his pounds 250,000 three-bedroom bungalow that caused neighbours to raise a petition and contact the planning department at Alnwick District Council.
They are angry that Blue Coat C of E school, in Terry Road, Stoke, has applied for permission to fence off what they believe is public land.
Sergeant Peter Thomas of Llanedeyrn police said: 'We're working with Cardiff council to fence off the school to prevent these issues and working with police motorcycle off-road teams to combat this behaviour with regular patrols.
A formal notice has been served on the owner ordering him to clean up and fence off the land.