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Spread option |
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Spread optionA position consisting of the purchase of one option and the sale of another option on the same underlying security with a different exercise price and/or expiration date.Spread option Similar MatchesSelling the spreadSelling the spreadA spread whose option to be sold is trading at a higher premium than the option to be bought. Put ratio backspreadPut ratio backspreadA complex options strategy adopted when one believes a stock price will decline but wants to protect against it rising. Intracommodity spreadIntracommodity spreadUsed in the context of futures trading to refer to a trader holding, buying, and selling contracts in the same commodity on the same exchange, but for different months. Butterfly spreadButterfly spreadApplies to derivative products. Complex option strategy that involves selling two calls and buying two calls on the same or different markets, with several maturity dates. One of the options has a higher exercise price and the other has a lower exercise price than the other two options. The payoff diagram resembles the shape of a butterfly. Call spreadCall spreadThe simultaneous purchase (sale) of a call at one exercise price and sale (purchase) of another call at a higher exercise price. Further SuggestionsBox spreadSpread income bid offer spread bear spread Debit spread Spreadsheet calendar spread Horizontal spread Vertical spread Diagonal spread Interdelivery spread bear put spread Yield spread strategies NOB spread Maturity spread Time spread strategy Ratio Calendar Spread Alligator spread Ratio Spread condor spread debit spread put spread bull spread ratio spread bid/offer spread |
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