Synthetic Position
What is Synthetic Position? A synthetic position is a trading option used to simulate the features of another comparable position. More specifically, a synthetic position is created to simulate a similar reward or risk profile as that of a comparable position. In the field of options trading, a synthetic position is developed in two ways....
Trading Book
Comprehensive Trading & Investing eBook From capital markets to trading and technical analysis strategies, CFI’s 115-page trading & investing eBook covers all the major topics a world-class analyst needs to know. Welcome to the official trading eBook from the Corporate Finance Institute. In this 116-page trading manual, we walk through all the important skills and...
Breakup Value
What is Breakup Value? Breakup value is the value of a company if its components were to be sold or spun off and operated independently. The breakup value is obtained by taking the total assets of each component and deducting the total liabilities. If the current breakup value exceeds the current market value of the...
Poop and Scoop
What Does “Poop and Scoop” Mean? In the world of business, “poop and scoop” is the practice of spreading rumors or false information about a security so that it causes the security’s price to fall (poop). Then, with the newly deflated price in place, the security is bought (scoop) with the expectation that its price...
LEAPS
What are LEAPS? LEAPS (Long-Term Equity Anticipation Security) are options for terms that are longer than those of the most common options on equities and indices. Around 2,500 equities and 20 indices make LEAPS available in two forms: calls and puts. Traditional Options Traditional options typically come with three expiration cycles: Three months Six months...
