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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
l GERMAN super model Claudia Schiffer has angered locals on her island retreat of Majorca after fencing off part of the coastline - including a medieval defence tower - from the public.
Racecourses are perfectly entitled to practise their own brand of apartheid by fencing off members into their own enclosures if they choose.
Zainab Salim, the KWS senior warden for community service at the Tsavo conservation area said the fencing off of the line has created a barrier to wildlife movement.
The fencing off of a stretch of theseawall from the US Embassy to the Manila Yacht Club will begin in the next three days, EnvironmentSecretary Roy Cimatu said.
Western Power Distribution has started fencing off the only part of the Cardiff beauty spot left open to walkers to stop pet owners taking their animals for a stroll.