Alligator spread - Definition

A combination of put and call options that are collectively unfavourable in spite of the market movements being favourable. When the commissions are very high and it is nearly impossible to make a profit one lands up in this situation. This is typically the Spread eating the investor alive.



Terms near "Alligator spread"

Allocation
Allonge
Allotment
Allottee
Allowance
Allowance for doubtful accounts
Allowance of depreciation
Alpha
Alternate account
Alternate payee
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