In Finance, What is a Wild Card Option?
Wild card options are an investment strategy that is usually associated with a treasury bond or with futures contracts that involve treasury notes. Essentially, the wild card option involves the use of a short position in order to delay the delivery of the underlying security until a specified time. There are several advantages to the use of this approach under certain conditions, with the results being profitable for both the buyer and the seller. The buyer can benefit from the use of the wild card option. One of the benefits of the strategy is that the process allows the holder of the short futures contract to deliver the underlying security at a specified time of day. This time of day can even be after regular trading hours. All that is required is that the seller make the announcement earlier in the notice day. This allows both the buyer and seller to transact business at different pricing than the normally fixed trading prices that are part of the standard trading hours. A buyer c
