FT MarketWatch

Alligator spread

A Position consisting of a Combination of Put options and Call options that collectively create commissions so High that it is almost impossible to turn a Profit regardless of which direction the Underlier moves. The Term originates from the idea of the Spread "eating the investor alive."

Related Terms: 13 Commission, Call, Call option, Combination, High, Option, Profit, Position, Put, Put option, Spread, Term, Underlier
Other Related Pages: Category: Options Starting With: A
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