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Ratio strategy
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Ratio strategyA strategy in which one has an unequal number of long securities and short securities. Normally, it implies a preponderance of short options over either long options or long stock.
RELATED TERMS--------------------------------------
Strategy
The general or specific approach to investing that an individual, institution, or fund manager employs.
Long
To have bought more of something than one has sold of it.
Securities
Saleable papers, traded on stock exchanges, that yield an income (dividend, interest, etc.).
Short
One who has sold a contract to establish a market position and who has not yet closed out this position through an offsetting purchase; the opposite of a long position.
Stock
US equivalent of the British word "share", a block of shares with a nominal value of 100, or various kinds of fixed-interest securities; in Britain, goods stored ready for sale, raw materials, work in progress and finished but unsold products.
SIMILAR TERMS--------------------------------------
Ratings
An evaluation of credit quality of a company's debt issue by Thomson Financial BankWatch, Moody's, S&P, and Fitch Investors Service. Investors and analysts use ratings to assess the riskness of an investment.
Ratio
The relation between two quantifies expressed as the number of times one is greater than the other.
Ratio analysis
A way of expressing relationships between a firm's accounting numbers and their trends over time that analysts use to establish values and evaluate risks.
Ratio calendar combination
A strategy consisting of a simultaneous position of a ratio calendar spread using "calls" and a similar position using puts, where the striking price of the "calls" is greater that the striking price of the "puts".
Ratio calendar spread
Selling more near-term options than longer-term ones purchased, all with the same strike; either puts or calls.
Ratio spread
Constructed with either puts or calls, the strategy consists of buying a certain amount of options and then selling a larger quantity of more out-of-the-money options.
Ratio writer
An option writer who does not own the number of shares required to cover the call options he or she writes.
Rational expectations
The belief that people's expectations compensate for, and render useless, interventionist government policy.
Rationalization
A reorganization of a company in order to increase its efficiency.
Rationalize
To eliminate unnecessary employees, equipment, processes, etc. from a company or factory to make it more efficient.
PREVIOUS AND NEXT TERMS--------------------------------------
Ratio
The relation between two quantifies expressed as the number of times one is greater than the other.
Ratio analysis
A way of expressing relationships between a firm's accounting numbers and their trends over time that analysts use to establish values and evaluate risks.
Ratio calendar combination
A strategy consisting of a simultaneous position of a ratio calendar spread using "calls" and a similar position using puts, where the striking price of the "calls" is greater that the striking price of the "puts".
Ratio calendar spread
Selling more near-term options than longer-term ones purchased, all with the same strike; either puts or calls.
Ratio spread
Constructed with either puts or calls, the strategy consists of buying a certain amount of options and then selling a larger quantity of more out-of-the-money options.
Ratio strategy
Ratio writer
An option writer who does not own the number of shares required to cover the call options he or she writes.
Rational expectations
The belief that people's expectations compensate for, and render useless, interventionist government policy.
Rationalization
A reorganization of a company in order to increase its efficiency.
Rationalize
To eliminate unnecessary employees, equipment, processes, etc. from a company or factory to make it more efficient.
Raw material supply agreement
As used in connection with project financing, an agreement to furnish a specified amount per period of a specified raw material.
RELATED TERMS--------------------------------------
Strategy
The general or specific approach to investing that an individual, institution, or fund manager employs.
Long
To have bought more of something than one has sold of it.
Securities
Saleable papers, traded on stock exchanges, that yield an income (dividend, interest, etc.).
Short
One who has sold a contract to establish a market position and who has not yet closed out this position through an offsetting purchase; the opposite of a long position.
Stock
US equivalent of the British word "share", a block of shares with a nominal value of 100, or various kinds of fixed-interest securities; in Britain, goods stored ready for sale, raw materials, work in progress and finished but unsold products.
SIMILAR TERMS--------------------------------------
Ratings
An evaluation of credit quality of a company's debt issue by Thomson Financial BankWatch, Moody's, S&P, and Fitch Investors Service. Investors and analysts use ratings to assess the riskness of an investment.
Ratio
The relation between two quantifies expressed as the number of times one is greater than the other.
Ratio analysis
A way of expressing relationships between a firm's accounting numbers and their trends over time that analysts use to establish values and evaluate risks.
Ratio calendar combination
A strategy consisting of a simultaneous position of a ratio calendar spread using "calls" and a similar position using puts, where the striking price of the "calls" is greater that the striking price of the "puts".
Ratio calendar spread
Selling more near-term options than longer-term ones purchased, all with the same strike; either puts or calls.
Ratio spread
Constructed with either puts or calls, the strategy consists of buying a certain amount of options and then selling a larger quantity of more out-of-the-money options.
Ratio writer
An option writer who does not own the number of shares required to cover the call options he or she writes.
Rational expectations
The belief that people's expectations compensate for, and render useless, interventionist government policy.
Rationalization
A reorganization of a company in order to increase its efficiency.
Rationalize
To eliminate unnecessary employees, equipment, processes, etc. from a company or factory to make it more efficient.
PREVIOUS AND NEXT TERMS--------------------------------------
Ratio
The relation between two quantifies expressed as the number of times one is greater than the other.
Ratio analysis
A way of expressing relationships between a firm's accounting numbers and their trends over time that analysts use to establish values and evaluate risks.
Ratio calendar combination
A strategy consisting of a simultaneous position of a ratio calendar spread using "calls" and a similar position using puts, where the striking price of the "calls" is greater that the striking price of the "puts".
Ratio calendar spread
Selling more near-term options than longer-term ones purchased, all with the same strike; either puts or calls.
Ratio spread
Constructed with either puts or calls, the strategy consists of buying a certain amount of options and then selling a larger quantity of more out-of-the-money options.
Ratio strategy
Ratio writer
An option writer who does not own the number of shares required to cover the call options he or she writes.
Rational expectations
The belief that people's expectations compensate for, and render useless, interventionist government policy.
Rationalization
A reorganization of a company in order to increase its efficiency.
Rationalize
To eliminate unnecessary employees, equipment, processes, etc. from a company or factory to make it more efficient.
Raw material supply agreement
As used in connection with project financing, an agreement to furnish a specified amount per period of a specified raw material.
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This dictionary contains 24549 terms.
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