Alligator Spread An unprofitable spread that occurs as a result of large commissions charged on the transaction, regardless of favorable market movements. An alligator spread is usually used in the options market to describe a collection of put and call options that may not be profitable. Breaking It Down: Pricing models and a more efficient market can help reduce the traditional spread on a security...
Related to "Alligator Spread" | Index Options: the Essential Guide Index options are derivatives whose underlying security is not a single stock but a basket of securities called an index. They provide investors with the... | |
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