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Delta Spread |
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Delta 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.Delta Spread Similar MatchesCall spreadCall spreadThe simultaneous purchase (sale) of a call at one exercise price and sale (purchase) of another call at a higher exercise price. Put ratio backspreadPut ratio backspreadA complex options strategy adopted when one believes a stock price will decline but wants to protect against it rising. Intercommodity spreadIntercommodity spreadIn the commodities market, a spread consisting of a long position and a short position in different but related commodities for example, speculating that the price relationship between the two commodities will change, e.g., platinum and gold. SpreadSpreadThe difference between the bid price and the offer price for shares and for units in a unit trust. Market makers make their profit from the spread. They buy shares at the lower bid price and sell at the higher offer one. Box spreadBox spreadA four-sided option spread that involves a long call and a short put at one strike price as well as a short call and a long put at another strike price. Example: buying 1 XYZ May 60 call, and writing 1 XYZ May 65 call; simultaneously buying 1 XYZ May 65 put, and writing 1 May 60 put. Further Suggestionsbear spreadBox spread Price spread Calendar spread Spread income Relative yield spread Diagonal spread Spread Spread option Option spread Debit spread Credit spread bear put spread bear call spread Bid/ask spread Selling the spread put spread Time spread strategy Mob spread condor spread credit spread Maturity spread Spread strategy ratio spread Horizontal spread |
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