What is the meaning of FENCE?

FENCE is a long (short) underlying position together with a long (short) out-of-the-money put and a short (long) out-of-the-money call. All options must expire at the same time.

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APABarry Goldsmith. (2010). fence. Retrieved September 20, 2026, from http://smartdefine.org/fence/definitions/1153829
ChicagoBarry Goldsmith. 2010. "fence" http://smartdefine.org/fence/definitions/1153829 (accessed September 20, 2026).
HarvardBarry Goldsmith 2010, fence, Smart Define, viewed 20 September, 2026, <http://smartdefine.org/fence/definitions/1153829>.
MLABarry Goldsmith. "fence" 21 October 2010. Web. 20 September 2026. <http://smartdefine.org/fence/definitions/1153829>
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