Option nomenclature

Discussion in 'Options' started by earth_imperator, Sep 13, 2022.

  1. Are my interpretations right? :
    chain: all the Call and Put strikes of an expiration date
    multi-leg: a strategy consisting of at least 2 strikes
    vertical: in a multi-leg strategy, when one of Call or Put of same chain used
    horizontal: in a multi-leg strategy, when one of Call or Put of at least 2 chains used
    iron: in a multi-leg strategy, when Call AND Put used
     
    Last edited: Sep 13, 2022
  2. qwerty11

    qwerty11

    1: no, all options in name
    2: no, >= 2 options in same name
    3: yes (same date)
    4: that's called calendar, not horizontal
    5: no, iron means nothing (iron condor or butterfly does)
     
  3. ffs1001

    ffs1001

    Attention seeking poster : someone who starts pointless threads, asking silly questions, when the answers are available on Google within seconds.
     
  4. Why do you then bother to answer, loser? Nothing else todo in your boring life?
     
  5. ffs1001

    ffs1001

    Nope, not feeling that reason. I just like to see how easily a fool is triggered, and you took the bait pretty quickly.
    Well done.

    I await your next pointless thread.
     
  6. I call such people like you just SCUM! A trolling idiot.
     
  7. Hmm. I've seen "horizontal" used at many locations as synonym for calendar, even "time xxx", like in "time spreads".
    And it so well harmonizes with "vertical", IMO :)

    Btw, I forgot in the list the mixture of vertical and horizontal: the diagonal :)

    Another interesting and IMO important nomenclature to know is "net volatility" in conjunction with multi-leg constructs.

    I just wonder why they are called "iron condor" and "iron butterfly". You, or anybody else, know the reason for the "iron" part? :)
    Update: it seems my initial definition was right: wikipedia says on the iron condor page
    "The word iron in the name of this position indicates that, like an iron butterfly, this position is constructed using both calls and puts".
     
    Last edited: Sep 14, 2022