A series of options refers to a group of options on a given underlying security with the same specified exercise price and the same expiration month.
Because a series of options contain calls or puts on the same security at the same price that expire at the same time, their prices should be very similar.
The investor will find several listings of option series in the option class that refer to calling the option as a call or a put.
Options series offer traders many ways to make money.
A collar is an options strategy that involves buying a put option down and selling a put option up, which is used to protect against large losses but also cap large profits up.
A full ratchet is an anti-dilution provision that applies the lowest selling price as the option’s adjusted price or conversion rate to existing shareholders.
The interest rate collector uses option contracts to hedge interest rate risk to protect floating rate borrowers from rate hikes or lenders from falling rates in the event of a reverse collar.
A long straddle is an option strategy that involves buying both a long call and a long put on the same underlying asset with the same expiration date and strike price.
The option-adjusted spread (OAS) measures the difference in yield between a bond with an embedded option, such as an MBS or callable, and the yield on a Treasury bond.