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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved