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Position Terms

The parameters that define an ARRANGE covered-call position.

#Core terms

TermEconomic function
Stock TokenIdentifies the canonical underlying contract and multiplier state
QuantitySizes the long exposure and short-call obligation
StrikeDefines where retained upside ends
ExpiryDefines the option term and terminal observation
PremiumCompensates the call writer for the obligation

#Execution terms

  • Gross and net premium in an explicit unit.
  • Price source, timestamp, executable size and slippage bound.
  • Settlement asset, terminal observation and rounding rule.
  • Early-exit, transfer and roll behavior.
  • Corporate-action and exceptional-market treatment.

#Terms are obligations

Strike and expiry are not descriptive metadata. Once the short-call exposure exists, changing either requires a close, roll or novation that accounts for the option's current value.

ARRANGE Documentation