option spread

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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

References in periodicals archive ?
Garner says many of her clients use option spreads and other strategies instead of buying options outright.
The new fund will identify and exploit opportunities created by systemic mispricing of option spreads and volatility.
Specializing in advanced technical analysis, option spreads and the Greeks
The fund seeks to monetize volatility using a non-directional methodology that invests in option spreads.
The Tax Court has taken the position that spread transactions are not "similar arrangements" within the meaning of IRC Section 465(b)(4), and that losses on stock option spreads are thus not limited by the "at risk" rule.
Both cases involved foreign currency option spreads that the IRS deemed tax-avoidance shams.
The authors conclude that federal reinsurance would be most appropriate for large terrorist events and that the most efficient design would be securitization through the auction of federal excess-of-loss reinsurance call option spreads covering terrorist attacks.
See our Commissions and Fees page for commissions on broker-assisted trades, low-priced stocks, option spreads, and other securities.
Bullish three-way option spreads in Time Warner again Friday.
com/rates for details on commissions on low-priced stocks, option spreads, and other securities.
com/fees for details on commissions on low-priced stocks, option spreads, and other securities.
The Fund intends to write (sell) call options and purchase put options and/or enter into put option spreads on one or more broad based U.