• Has two primary meanings. It can refer to an options strategy or an operations term. For the later, it is the safe, cabinet, or other physical depository for securities which islocated in the back office. When box refers to an to an options strategy it is the placement of both a bull and a bear spread. One spread is comprised of puts and the other is comprised of calls. Both spreads have the same expiration. It is an arbitrage technique which self liquidates at expiration. Boxes can be executed as either debit or credit strategies.

 Embedded terms in definition
Back office
Bear spread
 Referenced Terms
 Lockbox: A collection and processing service provided to firms by banks, which collect payments from a dedicated postal Box that the firm directs its customers to send payment to. The banks make several collections per day, process the payments immediately, and deposit the funds into the firm's bank account.

 Lockbox system: A collection procedure in which customers mail payments to a post office Box that is emptied regularly by the firm's bank, which processes the payments and deposits them in the firm's account. This system speeds up collection time by reducing processing time as well as mail and clearing time.

 Option trading strategies: Can be market directional, volatility directional, market neutral, volatility neutral, time value capture, time value payment, and numerous variants of the aforementioned. The basic building blocks are puts and calls. These puts and calls can be American Style or European Style. They can be ordinary plain vanilla -or exotic. Among the latter are: Asian, Binary, Lookback, Knockin and Knockout. There are many other structures as well. Some specific strategies are: Backspreads, Bear, Box, Bull, Butterflies, Condors, Conversion, Credit, Debit, Diagonal, Fence, Guts, Horizontal, Purchased Call, Purchased Put, Ratio, Reverse Conversion, Sold Call, Sold Put, Straddles, Strangles, Synthetic Long Call, Synthetic Long Futures or Underlying, Synthetic Long Put, Synthetic Long Straddle, Synthetic Short Call, Synthetic Short Futures or Underlying, Synthetic Short Put, Synthetic Short Straddle, Vertical, and Volatility. There are also compound and nested options or strategies. Among these are: call-on-a-call, a call-on-a-put, a put-on-a-put, and a put-on-a-call.

 Related Terms
 Black box
In the box

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