Spread option


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Spread option

A 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

In options, the writing of a contract and the purchase of another with the same underlying asset, but with different strikes and expiration dates. A spread option is intended to reduce the risk of having a particular position on the underlying asset. The profit on a spread option comes from the difference in the strike prices of the two contracts. Spread options are usually traded over-the-counter. See also: Crack, Crush, Spark.
References in periodicals archive ?
Despite missing time with a wrist injury suffered in a loss to Doherty in the third week of the season, Edwards blossomed in the Warriors' pistol spread option and completed 92 of 161 passes for 1,205 yards and 10 touchdowns.
Another spread option which appeals is a buy of Kyle Stanley against Richard Sterne in a tournament match.
I seem to remember calling the quick spread option the 'Typhoid Mary' strategy.
5 displays the numerical values of the butterfly spread option together with its [DELTA], [LAMBDA], and its error with N = 80, [S.
In 2005, Nevada coach Chris Ault devised his Pistol offense, and Mike Bellotti brought Gary Crowton to Oregon to install the spread option.
A sampling of topics: control systems identification in finance and economics, a neural network approach to option pricing, hedge fund portfolio selection with modified expected shortfall, looking for short term signals in stock market data, and modeling spark spread option and power plant evaluation.
And then there is this: Utah, which is UCLA's opponent in Saturday's opener at the Rose Bowl, operates a spread option offense in which it regularly employs a four-receiver formation.
The best Five Nations spread option looks to be buying total points at 52 in the Calcutta Cup clash.
Among the recent product developments noted by editors that helped Numerix climb the list are its two-factor spread model, especially active in the Korean spread option market.
These Broncos run the spread option, the likes of which the NFL has rarely seen with the exception of the odd Wildcat formations.
And while the Broncos' revival has been a nice story, at some point their spread option attack and their limited quarterback will get found out on the road, where they have won their last four games.
Francis defensive coordinator Mark Gibbons will have to devise a scheme to stop Downey's spread option, designed by offensive coordinator Bob Gleason.