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Ratio Spread |
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Ratio spreadOption strategy using either puts or calls. The trader purchases a certain number of options and then sells a larger number of out of the money options.Ratio SpreadConstructed with either puts or calls, the strategy consists of buying a certain amount of options and then selling a larger quantity of more out-of-the-money options.Ratio Spread Similar MatchesSpread 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. Mob spreadMob spreadThe yield spread between a tax-free municipal bond and a Treasury bond with the same maturity. 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. Yield spreadYield spreadThe difference in yield between different security issues usually securities of different credit quality. 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. Further SuggestionsBid asked spreadSpread Maturity spread Spread option Interdelivery spread bear spread Yield spread strategies Debit spread bid offer spread Dealers spread Spread position bear call spread Spread income Perpendicular spread Option spread credit spread crack spread Put ratio backspread Selling the spread Ratio Calendar Spread Horizontal spread NOB spread Spreadsheet Intermarket sector spread Price spread |
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