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Call spread |
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Call spreadThe simultaneous purchase (sale) of a call at one exercise price and sale (purchase) of another call at a higher exercise price.Similar MatchesDelta SpreadDelta SpreadA ratio spread that is established as a neutral position by utilizing the deltas of the options involved. The neutral ratio is determined by dividing the delta of the purchased option by the delta of the written option. See also Ratio Spread and Delta. Alligator spreadAlligator spreadThe term used to describe a spread in the options market that generates such a large commission that the client is unlikely to make a profit even if the markets move as the investor anticipated. Spread strategySpread strategyA strategy that involves a position in one or more options so that the cost of buying an option is funded entirely or in part by selling another option in the same underlying. Also called spreading. Crack spreadCrack spreadA type of commodity-product spread involving the purchase of crude oil futures and the sale of gasoline and heating oil futures. Diagonal spreadDiagonal spreadAn options strategy requiring a long and a short position in the same class of option at different strike prices and different expiration dates. For example, two puts or two calls in the same stock. See: Calendar spread; vertical spread. Further Suggestionsdebit spreadNarrowing the spread Interdelivery spread Spread Intramarket sector spread Horizontal spread Maturity spread Spread position spread betting bear call spread Ratio Spread Put ratio backspread Credit spread bid/offer spread box spread Underwriting spread bear spread Spread order Time spread strategy Relative yield spread Bid asked spread Selling the spread put spread Generic credit spread Spread income |
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