Close Navigation
Learn more about IBKR accounts

Conversion

Trading Term

An option strategy involving the simultaneous sale (or purchase) of a call option and purchase (or sale) of a put option in identical numbers, where both have the same underlying, expiration date, strike price, and underlying. For example:

  • Purchase a conversion: Sell 1 XYZ April04 75 call, Buy 1 XYZ April04 75 put, Buy 100 shares XYZ
  • Sell a conversion: Buy 1 XYZ April04 75 call, Sell 1 XYZ April04 75 put, Sell 100 shares XYZ

IBKR Campus Newsletters

This website uses cookies to collect usage information in order to offer a better browsing experience. By browsing this site or by clicking on the "ACCEPT COOKIES" button you accept our Cookie Policy.