Delta Spread(redirected from Delta Spreads)
A situation in which the difference in price of two or more related options is zero. An investor holding these options will find that a small change in the price of the underlying asset will not affect the price of his/her options, but a large movement in any direction will result in a large profit. A delta spread is a hedging strategy designed to minimize risk while maximizing return. The most common type of delta spread is a calendar spread. See also: Call ratio backspread.