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 classic literature ?
Thence, swelling over the rim of moss-grown stones, the water stole away under the fence, through what we regret to call a gutter, rather than a channel.
As he approached the stream, his heart began to thump he summoned up, however, all his resolution, gave his horse half a score of kicks in the ribs, and attempted to dash briskly across the bridge; but instead of starting forward, the perverse old animal made a lateral movement, and ran broadside against the fence.
As the child complained of hunger and thirst, she climbed over the fence with him; and, sitting down behind a large rock which concealed them from the road, she gave him a breakfast out of her little package.
But possibly the day will come when it will be partitioned off into so-called pleasure-grounds, in which a few will take a narrow and exclusive pleasure only--when fences shall be multiplied, and man-traps and other engines invented to confine men to the PUBLIC road, and walking over the surface of God's earth shall be construed to mean trespassing on some gentleman's grounds.
It's perfectly plain that the thief took advantage of the reception at Patsy Cooper's when all the neighbors were in her house and all their niggers hanging around her fence for a look at the show, to raid the vacant houses undisturbed.
I reached Covey's about nine o'clock; and just as I was getting over the fence that divided Mrs.
But I mean to stick to Wildfire: I shan't get a better at a fence in a hurry.
Repeatedly he was by her side, and, neglecting his own defence, held before her the fence of his triangular steel-plated shield; and anon starting from his position by her, he cried his war-cry, dashed forward, struck to earth the most forward of the assailants, and was on the same instant once more at her bridle rein.
Our own experience has taught us, nevertheless, that additional fences against these dangers ought not to be omitted.
On my right hand there were lines of fishing stakes re- sembling a mysterious system of half-submerged bamboo fences, incomprehensible in its division of the domain of tropical fishes, and crazy of aspect as if abandoned for- ever by some nomad tribe of fishermen now gone to the other end of the ocean; for there was no sign of human habitation as far as the eye could reach.
Some of the latter had been left by the Indians, and began already to assume the moss and inclination of age, therein forming a very marked contrast to the infant plantations that peered over most of the picketed fences of the village.
And it amused him; it gratified that irregularly sociable side of his nature which had always expressed itself in a relish for ungrammatical conversation, and which often, even in his busy and preoccupied days, had made him sit on rail fences in young Western towns, in the twilight, in gossip hardly less than fraternal with humorous loafers and obscure fortune-seekers.