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Finance Dictionary and Glossary of Investment Terms
hedge wrapper
Definition 1.
An options strategy in which a trader with a long position in the underlying stock buys an out-of-the-money put option and sells an out-of-the-money call option.
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Definition 2.
An options strategy in which an investor with a long position in an underlying stock buys an out-of-the-money put and sells an out-of-the-money call. The hedge wrapper defines a range where the stock will be sold at expiration of the option, which way the stock moves.
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