spreading


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Spreading

An options strategy in which one buys one option contract while selling another on the same underlying asset, but with either a different strike price, a different expiration, or both. Spreading allows the investor to profit from price movements between the two option contracts. It can be a form of speculation. See also: Strike spread.

spreading

The establishment of a long position in an option and a short position in another option of the same class but with a different strike price or expiration date, or both. Spreading is supposed to achieve profit from a difference in relative price movements of two options of the same class.
References in periodicals archive ?
This deflection or flexing provides a spreading or "cross-stretching" action to effectively remove web wrinkles.
As the scale of the greatest number of ILI cases obtained at the national level was connected with those from prefectural data and had an effect on the spreading mode and velocity of peak ILI activity, the greatest number of ILI cases obtained from the first prefecture in the season also is worthy of attention.
Still, Aphrodite Terra would not look exactly like a spreading center on Earth, Head and Crumpler reasoned, because Venus' high surface temperatures -- averaging around 480 [degrees] C, or almost 900 [degrees] F -- would render the veiled planet's lithosphere much more malleable than the plates here at home.
Researchers have now identified an actual eruption believed to be part of a seafloor spreading episode.
Rather, it is broken into small, straight sections called spreading centers.
One of the most exciting recent findswas made by the National Oceanic and Atmospheric Administration (NOAA) research ship Discover, which lived up to its name last August during a cruise over the Juan de Fuca spreading ridge, 400 miles off the coast of Oregon.