pegging

Definition of "pegging"
  1. Activity of undertaking transactions in an asset linked to an option just before its expiration date to keep its price from falling, ensuring that previously provided put options become valueless, guarding the premiums that were obtained earlier
How to use "pegging" in a sentence
  1. The stockbroker's strategy of pegging helped in protecting the premiums he received earlier.
  2. Pegging is initiated by Tom to prevent the price drop of the options about to expire.
  3. Pegging ensures the written put options from becoming valuable.

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