Spread strategy

Spread strategy

A strategy that involves a position in one or more options so that the cost of buying an option is funded entirely or in part by selling another option in the same underlying. Also called spreading.

Spread Strategy

Any of several investment strategies that involve maintaining different positions on options or futures with the same underlying asset, often with different expiration dates. Spreading may take many different forms, and is designed to hedge against loss regardless of price movements on the underlying asset.
References in periodicals archive ?
The volatility control spread strategy is designed to deliver greater growth opportunity than a traditional cap strategy, with more stable spreads regardless of the interest rate environment.
With the new volatility control spread strategy, interest is:
The bull call spread strategy is an extension of the long call strategy, which we had explained in our October 2009 issue (Take a Call).
Let us consider an example to understand the bull call spread strategy.
The call spread strategy requires purchase of call option 1 and sale of call option 2, where [X.
Option Spread Trading provides a comprehensive, yet easy-to-understand explanation of option spreads, and shows you how to select the best spread strategy for any given market outlook.
The Fund uses a put option spread strategy to seek to provide additional downside protection in case of large market declines.
Digging deeper into today's unusual call volume, it appears we've discovered a September-dated spread strategy centering on ADM.
Luminent's Spread strategy invests primarily in US agency and other highly-rated single-family, adjustable-rate and hybrid adjustable-rate mortgage-backed securities and leverages these investments through repurchase agreements and commercial paper.
Luminent's Spread strategy invests primarily in US agency and other highly-rated single- family, adjustable-rate and hybrid adjustable-rate mortgage-backed securities and leverages these investments through repurchase agreements and commercial paper.
With both sets of seemingly paired trades appearing to be the initiation of long positions on CAT, I am at a bit of a loss as to what type of spread strategy this could be.
Luminent's Spread strategy invests primarily in US agency and other highly- rated single-family, adjustable-rate and hybrid adjustable-rate mortgage- backed securities and leverages these investments through repurchase agreements and commercial paper.