combination

Definition

An option strategy involving the purchase or sale of both a put and a call on the same underlying stock, with different strike prices or expiration dates.

Use combination in a sentence

You may want to try and put out a combination of products that will allow you to get the most that you can.

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The combination strategy had diversified our risk so we could then expect the future changes in our financial situation on specific dates.

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My hedge fund manager is notorious for trying to thread the needle on combination trades and both buying and selling an option on a stock and hoping it does exactly what he predicts.

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