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Investors that employ this strategy make profits when the price of the underlying asset decreases.

This is a strategy that traders to trade both the options and bond markets, when the expectation is for the price of the underlying asset to increase in value.

Commodity/energy prices are subject to variations, especially at certain times of the year. For instance, a very cold winter or a massive devastation caused by a hurricane to offshore oil facilities in the Gulf Coast of the US could produce demand driven price surges. Swing options are therefore used by option holders to hedge against sudden price fluctuations of these commodities.

Swaptions must have two sides to the swap deal: the receiver and the payer. The receiver pays the floating leg of the swap while receiving the fixed leg. The payer pays the fixed leg and receives the floating leg of the swap

This is a bullish options trading strategy when the trader expects the price of the asset to end higher than market price on expiration of the option.

This is an options trading strategy that is designed to make money when the direction of the asset cannot be predetermined. It is thus setup in such a way that whether the price of the asset moves up or down, the trade makes money. Strangles have a bull and a bear component.

Stock options are usually used as compensation to workers or company executives instead of cash.

Stock compensation is used when the company does not want to deplete its cash reserves. It is also used as a strategy to discourage the best staff from leaving a company and joining a competitor.

STIR options and futures contracts are part of the arsenal that most companies use to protect against the risk of lending or borrowing.

This is an option with a structured premium payment, which ends up being more expensive than if the payment was made on initiation of the contract. Part of the contract is a stipulation on when such part premium payments are to be made.

Spring loading is a controversial method of profiting from stocks which relies on timing to give the owners of the issued stocks instantaneous profit. Those who oppose spring loading say that profits should be based on performance of the stock in increasing shareholder value as opposed to transient price surges on spring loaded stocks caused by positive news.

There are two main types of spread options: bull spreads and bear spreads, each of which have a bull and a bear component. Spread options are usually used to be able to match several price scenarios and to take sequential profits on most of the strike prices if it is not possible to profit from all. This is used as a less risky strategy of trading options where several scenarios are possible.

It is used by investors who make use of delta-hedging and gamma-hedging trading strategies.

This is also called binary options where the trader only receives a payout if all conditions he set out for the trade are met, but loses the amount invested if they are not.

This is also called a deferred strike option.

Straddles always involve two legs of a trade that uses a strike price above and another strike below the market price. Short straddles are therefore used when traders believe that the price of a stock will not move significantly either up or down.

The short leg is simply used to refer to a component of an option trade in which a trader has a short position. Even if an option involves calls and puts and the trader has a short on one of such positions, the one carrying the short position is called the short leg of the position.

The basis of SVT is that company executives usually exercse stock options at a price favourable to them irrespective of the market price. This tends to reduce the company's profits because the stock options would have yielded more money if they had been sold to third parties. SVT therefore measures this equity that would have accrued to the company if third party sales were done as opposed to transfer to company executives.

Exercising the serial option places the trader in a long position on the futures contract for the next month. This strategy is most suitable when volatility is high but is expected to fall, and when the price is expected to trade with some measure of uncertainty.

This strategy is most suitable when volatility is high but is expected to fall, and when the price is expected to trade with some measure of uncertainty.

Russian options have no expiration date. The trader simply waits until he finds a price that he finds advantageous before exercising the option.

Investors employ this strategy to secure profits, manage risks and limit losses.

It is used by investors to help mitigate losses when an underlier is declining in value.

Investors employ this strategy to hedge against losses.

It is the trading strategy of entering a new trade while simultaneously closing an existing one in response to changes in market conditions.