Spread option

(redirected from Spread options)

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 ?
Illumitex's LED optics offer a choice of beam spread options, and the new PowerHarvest provides a more widespread light pattern, something that greenhouse growers whose lights are mounted closer to the plant canopy are looking for.
In this paper we present a spectral method based on the improved Lagrange formula to compute European, digital, and butterfly spread options.
com)-- This new service offering was made into reality after the success of the Euro Interest Rate Spread Options matching during the last quarter of 2009 which, at present, has traded more than 5 billion Euros in speculative amount.
With attractive spread options thin on the ground, maybe this is a week to put all the eggs in one basket, and weigh in with a buy of Sporting's Graeme McDowell special at 40.
Our database reflects significant new product activity in the mid-1980s as a range of low-fat spread options were launched by the major branded players.
This would be my first choice of the dip and spread options.
In Silicon Valley, tech firms spread options liberally among workers in lieu of huge pay increases.
1 Expands Model Coverage for Convertible Bonds, Commodities & Power Spread Options
Beam spread options include: Spot 15 degrees, Flood 25 degrees and Wide Flood 40 degrees.
The final match of a series usually offers punters a bigger range of spread options as series specials become match specials.
Constant Maturity Swap (CMS) Analytics (Swaps, Spread Options and Caps/Floors)
Additionally, MGEX now offers calendar spread options (CSOs) for the North American HRSW contract, as of February 1, 2015.