Option Spread

Also found in: Wikipedia

0.01 sec.

Option spread

The trading of options of the same class at the same time in order to profit from changes in the size of the spread between different options.

Option Spread

An investment strategy in which one has a long position on an option contract while having a short position on another option on the same underlying asset, with a different strike price and/or expiration date. One uses an option spread to profit from price movements in the underlying asset. There are a number of different kinds of option spreads. See also: Call Spread, Put spread.

option spread

See call spread, put spread.

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.

?Page tools

Printer friendly
Cite / link

Feedback
Add definition

Mentioned in	?		References in periodicals archive	?		Financial browser	?		Full browser	?
Alligator call option Call Spread Long Leg Put Put Option Put Spread Pyramiding Ratio Calendar Spread Sell the Spread Selling the Spread Short Leg spread Synthetic Investment Synthetics			9781576602607 Option spread strategies; trading up, down, and sideways markets. Option spread strategies; trading up, down, and sideways markets by Reference & Research Book News Both cases involved foreign currency option spreads that the IRS deemed tax-avoidance shams. Levels of certainty by Schnee, Edward J. / Journal of Accountancy When the 6 day options expire we can sell the next month to take in more premium, still keeping the 70 day option spread. Option Trading ? Thinking "Outside the Box" by David Rivera / Finance and Investment community			Optimum Capacity Optimum Leverage Ratio option Option Account Option Adjusted Spread Option Agreement Option Chain option contract Option Cycle Option Disclosure Document Option Elasticity Option Exchange Option Fee Option Holder Option Margin Option Mutual Fund Option not to deliver Option Period Option Premium Option Price Option Pricing Curve Option Pricing Model option risk Option Seller Option Series Option Spread Option sur contrat a terme Option Tender Bond option to purchase Option Writer Option-Adjusted Spread option-growth fund Optional Call Optional Cash Purchase Optional Dividend Optional Payment Bond Options backdating Options Chain Options Class Options Clearing Corporation Options Contract Options contract multiple Options on physicals Options Price Reporting Authority Options Series Options-Income Fund Optionsinhaber Optionskaufer Opushon Ryou Opzione coperta Opzione di acquisto			Option Markets option money Option mutual fund Option Mutual Funds Option not to deliver Option One Mortgage Corporation Option One Mortgage Loan Trust Option Package 1 Option Period Option Periods Option premium Option Premiums Option price Option Prices Option Pricing Curve Option Pricing Curves option pricing model Option Pricing Models option risk Option ROM Option Select Button Option seller Option Sellers Option series Option series Option series Option series Option series Option Spread Option Spreads Option style Option sur contrat a terme option switch option tender bond Option Tender Bonds Option time value option to purchase Option to Purchase Additional Insurance Option to Purchase Paid-Up Additions option toggle Option writer Option writer Option writer Option writer Option Writers Option Year Option Year Four Option Year One Option Year Three Option Year Two Option-adjusted spread Option-Adjusted Spreads option-growth fund Option-Income Fund Option-Income Funds optional optional optional optional

Financial Dictionary

Free Tools:	For surfers: Free toolbar & extensions \| Word of the Day \| Help For webmasters: Free content \| Linking \| Lookup box \| Double-click lookup

Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.