Far Option

Far Option
The option with the longer time to expiration in a calendar option spread, which involves buying or selling options with different expirations. In such a spread, the shorter-dated option will be the near option. Because far options have more time to attain an in-the-money status, they are associated with larger premiums.

For example, a calendar spread strategy may involve selling May calls and buying October calls on the same stock. In this case, assuming it is April, the October calls would be the far options and the May calls would be the near options.


Investment dictionary. . 2012.

Игры ⚽ Нужно сделать НИР?

Look at other dictionaries:

  • Far Cry 2 — Developer(s) Ubisoft Montreal Publisher(s) Ubisoft Designer(s) …   Wikipedia

  • Option (music magazine) — Option Issue #69, July/August 1996. Executive editor Scott Becker Categories Music magazine Frequency Bimonthly …   Wikipedia

  • Option Paralysis — Studio album by The Dillinger Escape Plan Released …   Wikipedia

  • Far East Movement — at the 2011 MuchMusic Video Awards. From Left to Right: J Splif, Kev Nish, Prohgress, DJ Virman. Background information Origin …   Wikipedia

  • far — 1. far from + noun. This is a common way of expressing denial or rejection of a proposition: • The American dream seems as far from reality as my Communist dream Guardian, 1986. Its function as metaphor is more strongly evident in the variant… …   Modern English usage

  • Far East Help Foundation — (FEHF) non profit organization, providing help for the children of Vietnam. Established in 1997 and based in Miami, USA.The Organization declares its mission to support Vietnamese children who have been abandoned, abused or homeless and their… …   Wikipedia

  • Option style — In finance, the style or family of an option is a general term denoting the class into which the option falls, usually defined by the dates on which the option may be exercised. The vast majority of options are either European or American (style) …   Wikipedia

  • Option (filmmaking) — Optioned redirects here. For uses of this term outside the film industry, see Option (disambiguation). In the film industry, an option is a contractual agreement between a potential film producer, such as a movie studio, a production company or… …   Wikipedia

  • Option Lock — Doctor Who book Option Lock Series Eighth Doctor Adventures …   Wikipedia

  • Option for the poor — The option for the poor or the preferential option for the poor is one of the basic principles of the Catholic Social Teaching tradition as articulated in the 20th century. Contents 1 Theological significance 2 Origin and usage 3 Liberation… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”