## Put Accumulator

Put Accumulator The put accumulator is an extension of the eachway put. There are four strike prices with the settlement prices at 0, 10, 30, 60 and 100 as outlined in Figure 1. This is a strategy which, when bought out-of-the-money, can provide extremely high gearing, and increasingly rewards the speculator for an increasingly accurate forecast. […]

## Duke of York

Duke of York The grand old Duke of York, He had ten thousand men. He marched them up to the top of the hill And he marched them down again. And when they were up, they were up; And when they were down, they were down. But when they were only halfway up, They were […]

## Eachway Tunnel

Eachway Tunnel The eachway tunnel (aka corridor, rangebet or ranger) is a volatility trade, as is the standard tunnel option, but with the eachway tunnel there are a further two strikes providing three different settlements levels, not counting the ‘dead heats’. There are similarities with selling the conventional straddle but with the eachway tunnel, since […]

## Call Accumulator

Call Accumulator The call accumulator is an extension of the eachway call. There are four strike prices with the settlement prices at 0, 10, 30, 60 and 100 as outlined in Figure 1. This is a strategy which, when bought out-of-the-money, can provide extremely high gearing, and increasingly rewards the speculator for an increasingly accurate forecast. […]

## Eachway Put Options

Eachway Put Options Eachway put options have two strikes so that if the underlying asset price is above the upper strike the instrument settles at 0. Between the strikes the instrument settles at 40, while below the lower strike the eachway put option settles at 100. If the underlying price settled on either of the […]

## Eachway Call Options

An Introduction to Eachway Call Options The binary options eachway call options pays out for a win and a place. Eachway calls consist of two strikes so that at expiry, if the underlying is above the higher strike, the eachway call settles at 100. If the underlying is between the two strikes then the eachway […]

## Tunnel Options

An Introduction to Tunnel Options Tunnel options, a.k.a. corridor options or rangebets, are all-or-nothing binary options that settle at 100 if the underlying is between the strikes at expiry, or at zero if outside the strikes at expiry. Tunnel Options Tunnel options are a long binary call option and a short binary call option, the […]

## Binary Put Options

Binary Put Options Binary Put Options are all-or-nothing options that settle at 100 (if in-the-money at expiry, i.e. the underlying price is below the strike) or at zero (if out-of-the-money, i.e. the underlying price is above the strike). If at expiry the underlying price is exactly on the strike price then the settlement price of […]

## European Binary Options

European Binary Options European binary options are binary options that can only be exercised at expiry. This means that the final settlement price of the binary option is only determined at the expiry of the option. Path-Dependency European options are not path-dependent which means that the path of the asset price leading to the expiry […]

## Binary Call Options

Binary Call Options Binary call options are all-or-nothing options that settle at 100 if in-the-money at expiry, or at zero if out-of-the-money. At-the-Money Settlement Rules If the underlying at expiry is exactly on the strike (at-the-money) settlement can be treated in numerous ways: the two obvious candidates are that the binary call options are treated […]