| Dictionary, Encyclopedia and Thesaurus - The Free Dictionary 3,898,305,733 visitors served. |
Dictionary/ thesaurus | Medical dictionary | Legal dictionary | Financial dictionary | Acronyms | Idioms | Encyclopedia | Wikipedia encyclopedia | ? |
Diagonal Spread |
0.01 sec. |
|
|
Diagonal spread An 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, buying an XYZ April 50 call and selling an XYZ July 55 call. See: Calendar spread; vertical spread. Diagonal Spread An option strategy in which one enters into a long position on a call (or a put) while taking a short position on another call (or put) with the same underlying asset, but with different strike prices and expiration dates. One gains (or loses) on the change in the spot price of the underlying asset over the life of the spread. It derives its name from the fact that it shares features with a vertical spread (where the calls or puts have different strike prices) and a horizontal spread (where they have different expiration dates).
Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
|
| Financial Dictionary |
| Free Tools: |
For surfers:
Free toolbar & extensions |
Word of the Day |
Help
For webmasters: Free content | Linking | Lookup box | Double-click lookup |
|---|